Outlook: ASX starts FY16 after steady FY15

Market Reports

Despite a positive lead from Wall Street the Australian share market looks to start the first day of the 2016 financial year in the red. Over the last 2015 financial year the key S&P/ASX 200 index only managed a rise of 1.2 per cent in the 12 months of the end of June. Over the past week Greece’s debt crisis has dominated headlines and turned traders cautious ahead of a referendum this Sunday. 
 
Global markets
 
Wall Street ended higher on Tuesday: The Dow Jones Industrial Average firmed 0.1 per cent to close at 17,620, the S&P 500 added 0.3 per cent to close at 2,063 and the Nasdaq rose 0.6 per cent to close at 4,987.
 
European markets continued to decline on Tuesday: London's FTSE 100 shed 1.5 per cent, France's CAC 40 declined 1.6 per cent and Germany's DAX dropped 1.3 per cent.
 
Asian markets moved higher on Tuesday: Japan’s Nikkei gained 0.6 per cent, Hong Kong’s Hang Seng jumped 1.1 per cent, and China’s Shanghai Composite spiked 5.5 per cent.
 
Lifting from the session's low the Australian share market clawed out of the red and rose 0.7 per cent: The S&P/ASX 200 index closed 37 points higher at 5,459. On the futures market the SPI is 29 points lower. 
 
Currencies 
 
The Australian dollar at 7:30am was buying $US0.7706, 49.07 Pence Sterling, 94.37 Yen and 69.22 Euro cents.
 
Economic news due out today 
 
Australian Bureau of Statistics: Building approvals for May
 
Australian Industry Group: Performance of manufacturing (PMI) index for May
 
RP Data Core Logic: Home Value Index for May 
 
Reserve Bank of Australia: Index of commodity prices for May
 
Company news
 
Gold mining company Newcrest Mining Limited (ASX:NCM) has started exploration at Mungana Goldmines Limited’s (ASX:MUX) Chillagoe Project in North Queensland. Under the deal Newcrest will spend up to $20 million on exploration over a period of up to eight years as both groups strive to unlock the value of the project. Shares in Newcrest Mining fell 0.76 per cent to close at $13.02 on Tuesday.
 
Investment company Bentley Capital Limited (ASX:BEL) has launched an $8 million takeover bid for mining group Strike Resources Limited (ASX:SRK). Bentley’s conditional off-market bid is for a cash consideration of 5.5 cents per share and Strike Resources has advised shareholders to take no action until a formal recommendation is given. Shares in Strike Resources soared 32.43 per cent to close at $0.049 on Tuesday. 
 
Ex-dividends 

Clime Capital Limited (ASX:CAM) paying a 1.2 cent fully franked dividend 
GrainCorp Limited (ASX:GNC) paying a 7.5 cent fully franked dividend
Newhaven Hotels Limited (ASX:NHH) paying a 8 cent fully franked dividend
Programmed Maintenance Services Limited (ASX:PRG) paying a 11.5 cent fully franked dividend
 
Commodities 

Gold has declined $6.90 to $US1,172 an ounce for the August contract on Comex. 
Silver has lost $0.03 to $15.66 for September. 
Copper has eased $0.02 to $2.62 a pound. 
Oil has risen $0.76 to $US59.09 a barrel for August light crude in New York.

Subscribe to our Daily Newsletter?

Would you like to receive our daily news to your inbox?