Global stocks are mixed, oil slumps, U.S. services data is expected later today and the RBA keeps rates on hold. Here are four things to know in the market on Tuesday, September 6.
1. Global Stocks Mixed
U.K. and European stocks flip-flopped between losses and gains amidst choppy trading. Oil is in focus today, which is pushing stocks in all directions.
U.S. futures indicated a marginally higher opening as markets reopened after the Labor Day holiday.
Asian shares were mostly higher at closing, with Australia being the exception as investors remained focused on the central bank’s latest policy decision.
2. Oil Slumps
Brent oil was marginally lower on Tuesday after an agreement between Saudi Arabia and Russia failed to materialize.
Brent for November delivery slipped 33 cents to $47.30 a barrel after rising over 5% to $49.40 the previous day. Gains were driven by a pledge between Russia and Saudi Arabia to cooperate on supporting the oil market.
U.S. crude, meanwhile, saw a slight gain, trading at $44.94 per barrel. Nymex prices were up over $2.00 on Monday, peaking at $46.53.
3. U.S. Services Data Expected Later Today
Market players looked ahead to U.S. data due later today to gauge whether the economy is strong enough to withstand higher interest rates. Data is expected from the U.S. Institute of Supply Management on service sector activity. Analysts are expecting a reading of 55, 0.5 points lower.
A reading of 50 or higher indicates expansion.
4. RBA Holds Rates
The Reserve Bank of Australia made the decision to keep its benchmark interest rate at 1.5%. The decision was largely expected, and indicated that the central bank has no plans to change rates anytime soon.
The meeting was the final one chaired by Governor Glenn Stevens, who will be retiring this month. Stevens will be replaced by Philip Lowe, Stevens’ deputy. Lowe will be replaced by RBA banker Guy Debelle.
