Outlook: Aus shares set to open lower

Market Reports

by David Chau

Following weak leads, the Australian share market looks set to open lower.

On Monday, Wall Street slid for a third straight session, and every S&P 500 sector finished lower. A number of factors contributed to the pessimistic mood – including the shooting in Orlando over the weekend, the UK’s referendum on its European Union membership next week, and the Federal Reserve meeting this week (which may provide clues on when the next interest rate rise will happen).

Markets

Wall Street closed lower yesterday: The Dow Jones Industrial Average lost 0.7 per cent to close at 17,732, the S&P 500 lost 0.8 per cent to close at 2,079 and the NASDAQ lost 0.9 per cent to close at 4,848.

European markets closed lower: London’s FTSE lost 1.2 per cent, Paris lost 1.9 per cent and Frankfurt lost 1.8 per cent.

Asian markets closed lower: Nikkei lost 3.5 per cent, Hang Seng lost 2.5 per cent, and Shanghai Composite lost 3.2 per cent.

The Australian share market was closed lower when it last traded on Friday. The S&P/ASX 200 Index closed 49 points down to finish at 5,313. On the futures market the SPI is 40 points down.

Currencies

The Australian Dollar at 7:30AM was buying $US0.7388 cents, 51.98 Pence Sterling, 78.46 Yen and 65.46 Euro cents.

Economic news

NAB will release its Monthly Business Survey later today, which will have insights on business confidence.

Company news

CBL Insurance Limited (ASX:CBL) has received a ratings upgrade from financial ratings agency, A.M. Best. CBL’s financial strength got upgraded from B++ to A-, and its issuer credit rating rose from bbb to a-.

Shares in CBL closed 1.69 per cent up at $2.40.

Nuplex Industries Ltd (ASX:NPX) has announced that the NZ government has granted consent for it to be acquired by Allnex New Zealand Limited under a Scheme of Arrangement.

Shares in Nuplex closed steady at $5.00.

Ex-dividends 

Ironbark Capital will pay a dividend of 0.45 cents per share, fully franked.

Commodities

Gold is up $11 to $US1,287 an ounce for the August contract on Comex.
Silver has gained $0.11 to $17.44 for July.
Copper has gained $0.02 to $2.05 a pound for July.
Oil has lost $0.20 to $US49.52 a barrel for July light crude in New York.

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