The Bull

Saturday 20

October, 2018 1:47 PM



Aust shares look set to open lower

Aust shares look set to open lower

Australian shares look set to open lower, ignoring the positive sentiment on global markets and especially Wall Street's strong rally.

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By AAP 05.06.2018 07:42 AM

The Australian share market looks set to open more than a third of a per cent lower, despite strong gains on international markets.

At 0700 AEDT on Tuesday, the share price futures index was down 23 points, or 0.38 per cent, at 6,003.

Major global equities markets have closed higher with concerns over tariff wars between the US and the rest of the world were quelled by a strong jobs report from the US, and a flurry of mergers and acquisitions further boosting European bourses.

In the US, Wall Street's three major indexes rose, led by a rally in tech stocks that pushed the Nasdaq to a record closing high as investors bet on a continuation of strong economic growth following the better-than-expected non-payrolls data.

The Dow Jones Industrial Average rose 0.72 per cent, the S&P 500 gained 0.45 per cent and the Nasdaq Composite added 0.69 per cent.

Locally, in economic news on Tuesday, The Reserve Bank of Australia announces its decision on the interest rate, while the Australian Bureau of Statistics releases the March quarter's Balance of Payments and its International Investment Position data.

The Ai Group's Australian Performance of Services Index and the ANZ-Roy Morgan Consumer Confidence weekly survey are due out.

The aviation industry's most prominent global summit featuring airline leaders and delegates from around wraps up in Sydney.

Macquarie Asset Management head Shemara Wikramanayake is slated to speak at an AmCham lunch in Sydney, while Qantas chief executive Alan Joyce is scheduled to speak at the CAPA Airline CEO Summit in Sydney.

No major equities news is expected.

The Australian market on Monday closed higher despite fading a little in afternoon trading, with stocks boosted by strong monthly US jobs data and better-than-expected Australian retail spending figures for April.

The benchmark S&P/ASX200 index rose 35.1 points, or 0.59 per cent to 6,025.5 points, and while the broader All Ordinaries lifted 34.6 points, or 0.57 per cent, to 6,138.6 points.

Meanwhile, the Australian dollar has extended its rally prompted by the strong retail sales data.

The local currency was trading at 76.48 US cents at 0700 AEDT on Tuesday, from 76.31 on Monday.

CURRENCY SNAPSHOT AT 0700 AEDT:

One Australian dollar buys:

* 76.48 US cents, from 76.31 on Monday

* 83.98 Japanese yen, from 83.68 yen

* 65.38 euro cents, from 65.33 euro cents

* 57.44 British pence, from 57.12 pence

* 108.78 NZ cents, from 108.83 cents

GOLD:

The spot price of gold in Sydney at 0700 AEDT was $US1291.80 per fine ounce, from $US1,291.267 per fine ounce on Monday.

BOND SNAPSHOT AT 0700 AEDT:

* CGS 5.75 per cent May 2021, 2.1668pct, unchanged

* CGS 2.25pct May 2028, 2.7335pct, unchanged

Sydney Futures Exchange prices:

* June 2018 10-year bond futures contract at 97.240 (implying a yield of 2.760pct), from 97.265 (implying a yield of 2.735pct) on Monday

* June 2018 3-year bond futures contract at 97.790 (2.210pct), from 97.265 (2.735pct).

(*Bond market closes taken at 1630 AEDT previous local session; currency closes taken from 1700 AEDT previous local session)

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