The local market is poised to open the week slightly lower following Moody’s Ratings downgrade of the U.S. credit rating from Aaa to Aa1, leaving the U.S. government without a top-tier rating from any major agency.
Despite the looming downgrade, Wall Street posted gains on Friday, marking its fifth consecutive session in the green. Markets were lifted by optimism around the U.S.-China tariff truce. Over the week, the S&P 500 climbed nearly 5.5%, the Nasdaq jumped 7.2%, and the Dow added close to 3.5%.
This week, U.S. investor attention will turn to retail earnings, with reports due from Target, Home Depot, and Lowe’s.
Oil prices ended higher on Friday, logging a second consecutive weekly gain amid easing U.S.-China trade tensions. However, gains were capped by expectations of increased supply from Iran and OPEC+. Brent crude settled 1.4% higher at $65 per barrel. In contrast, copper fell nearly 2%, and iron ore dropped 1.4% to $101 per ton.
Locally, attention is centered on the Reserve Bank of Australia, with markets anticipating a 25 basis point rate cut in tomorrow’s announcement.
Rick Maggi, Financial Advisor Perth, Westmount Financial
