Company Interview / the open: ASX to drop despite Wall Street records

The local market is set for a negative session with ASX futures down 0.7%. This comes despite the S&P 500 achieving its sixth straight record closing high, while the Nasdaq also closed at another record in what was a choppy trade.

US and Chinese economic officials have held talks in Stockholm aimed at resolving the trade war, and seeking to extend a truce by three months. Meanwhile, in the wake of the trade deal, Australia faces the prospect of 15 to 20% tariffs on exports to the United States, with the American leader saying, “We are going to be setting a tariff, for essentially the rest of the world.” 

Oil prices have surged after the EU-US trade deal, with Brent crude futures increasing to $70 a barrel. Meanwhile, gold has fallen to a near three-week low on an appreciating US dollar. And the US dollar index is up 1% on the day, whilst the Australian dollar has fallen to US65.3c.