The Australian share market will open lower today.
Yesterday, the Reserve Bank cut the official cash rate by 0.25% to a record low of 1.5%. This morning, the Australian Dollar strengthened against the US Dollar, which is definitely not what the RBA was hoping for .
In the US, Wall Street had its worst day in a month, arising from concerns about US economic growth after weaker-than-expected economic data was released yesterday. Also, the price of crude oil has continued to slide, and it is now below US40 US per barrel -- its worst month in a year.
US economic newsConsumer spending on goods and services rose 0.4% in June, according to data released overnight by the Commerce Department. This was higher than what economists were predicting.
However, personal incomes rose by only 0.2% (which was below expectations). Furthermore, inflation remains below the Fed's 2% target.
MarketsWall Street closed lower on Tuesday: The Dow Jones Industrial Average lost 0.5 per cent to close at 18,314, the S&P 500 lost 0.6 per cent to close at 2,157 and the NASDAQ was down 0.9 per cent to close at 5,138.
European markets closed lower: London’s FTSE was down 0.7 per cent, Paris lost 1.8 per cent and Frankfurt lost 1.8 per cent.
Asian markets closed mixed: Nikkei lost 1.5 per cent, Hang Seng was closed, and Shanghai Composite was up 0.6 per cent.
The Australian share market closed lower yesterday: The ASX 200 Index closed 47 points down to finish at 5,541. On the futures market the SPI is down 35 points.
CurrenciesThe Australian Dollar at 7:20AM was buying $US76.15 cents, 57.03 Pence Sterling, 76.82 Yen and 67.85 Euro cents.
Economic newsLater today, the Australian Industry Group will release its Performance of Services Index data for June. This is a survey of 200 businesses which asks them to rate the relative level of business conditions, and an indicator of the country’s economic performance.
Company newsJames Packer’s Crown Resorts Ltd
(ASX:CWN) is being sued by the Miller Point Fund Incorporated. In this upcoming litigation, two decisions of the NSW Planning and Assessment Commission will be challenged. They are: 1) Its decision to approve modifications to the approved concept plan for Barangaroo, and 2) the construction of the Crown Sydney Hotel Resort at Barangaroo South. The case will be heard in the Land and Environment Court, and the next court date is 26 August.
Shares in Crown Resorts are trading 0.15% higher at $13.28.
BPS Technology Ltd
(ASX:BPS) has continued to expand in North America by opening three new franchises in New Hampsire, Alabama and Georgia. The company says it has brought on seven new franchisees since April, with four more in the pipeline, who are currently completing franchise application documents.
Shares in BPS are trading 0.5% up at $1.02.
CommoditiesGold has gained $13 to $US1,373 an ounce for the December contract on Comex.
Silver has added $0.20 to $20.70 for September.
Copper has gained $0.01 to $2.21 a pound for September.
Oil has lost $0.55 to $US39.51 a barrel for September light crude in New York.
