The Australian share market looks set to open higher this morning after a steady session on US markets and a lift in oil prices. Wall Street mainly treaded water on Thursday, with investors seeming to hold fire ahead of Friday’s jobs report. Of course all eyes were on the Bank of England on Thursday, who, as predicted, cut its benchmark interest rate by 25 basis points, to an historic low of 0.25 percent. It is the first cut since March 2009, and points to fears of a post-Brexit economic slowdown in the UK economy.
US economic news
The ISM Non-Manufacturing PMI index fell 1 percentage point to 55.5 for July, coming in below market expectations. Initial jobless claims rose by 3000 for the week ending 30 July, to 269,000. And new orders for manufactured goods in the U.S. decreased by 1.5 percent in June compared to May, slightly beating market expectations of a 1.8 percent drop. It was however the second straight month of declines.
Markets
Wall Street closed flat yesterday: The Dow Jones Industrial Average closed steady at 18,352 the S&P 500 closed flat at 2,164 and the NASDAQ gained 0.1 per cent to close at 5,166.
European markets closed up: London’s FTSE gained 1.6 per cent, Paris and Frankfurt both lifted by 0.6 per cent.
Asian markets closed up: Tokyo’s Nikkei added 1.1 per cent, Hong Kong’s Hang Seng gained 0.4 per cent, and China’s Shanghai Composite rose 0.1 per cent.
The Australian share market closed higher yesterday: The S&P/ASX 200 Index closed 10 points up to finish at 5,476. On the futures market the SPI is 17 points up.
Currencies
The Australian Dollar at 7:20AM was buying $US76.27 cents, 58.18 Pence Sterling, 77.18 Yen and 68.54 Euro cents.
Economic news
Due out today from the Reserve Bank of Australia is its quarterly statement on monetary policy.
Company news
SG Fleet Group Limited
(ASX:SGF) has announced it has acquired UK company Fleet Hire for £25.7 million. Fleet hire is located in the West Midlands and provides contract hire, salary sacrifice, short-term rental and fleet management services. The acquisition is part of a push into the UK market by SG Fleet, where it will look to replicate the success it has had locally with its Novalease product.
Shares in SG Fleet Group Limited closed 0.24 per cent lower yesterday at $4.10.
ASF Group Limited
(ASX:AFA) has announced it has been named as one of the three bidders who will start formal negotiations with the Greater London Authority for the development of Albert Island. Albert Island is one of the last remaining development opportunities in the Royal Docks area in London, and is a strategic priority for the Mayor of London.
Shares in ASF Group Limited closed flat yesterday at $0.25.
Ex-dividends
Three companies are going ex-dividend today including the Australian Masters Yield Fund, BKI Investment and Dejerriwarrh.
Commodities
Gold has gained $2.70 to $US1,367 an ounce for the December contract on Comex.
Silver has fallen $0.03 to $20.44 for September.
Copper has dropped $0.02 to $2.17 a pound for September.
Oil has gained $1.10 to $US41.93 a barrel for September light crude in New York.
