Outlook: ASX set for soft open

Market Reports

by Lee Brooks


The ASX has a negative lead from US stocks which dipped on Friday on investor concerns the Federal Reserve will start raising interest rates sooner rather than later.

Minutes released from the Federal Reserve’s July meeting showed an even split between those in favour of a near term rate increase and other who believe in waiting a little longer.

The NASDAQ did however manage its eighth consecutive weekly gain, it’s longest run of weekly gains since 2010.

Markets

Wall Street closed lower on Friday: The Dow Jones Industrial Average lost 0.2 per cent to close at 18,553, the S&P 500 lost 0.1 per cent to close at 2,184 and the NASDAQ slipped slightly to close at 5,238.

European markets closed lower: London’s FTSE dipped 0.2 per cent, Paris lost 0.8 per cent and Frankfurt shed 0.6 per cent.

Asian markets closed mixed: Tokyo’s Nikkei added 0.4 per cent, Hong Kong’s Hang Seng slipped 0.4 per cent, and China’s Shanghai Composite advanced 0.1 per cent.

The Australian share market closed higher ahead of the weekend: The S&P/ASX 200 Index closed 19 points up to finish at 5,527 to be 4 points lower on the week. On the futures market the SPI is 6 points down.


Currencies

The Australian Dollar at 7:20AM was buying 76.09 US cents, 58.26 Pence Sterling, 76.65 Yen and 67.28 Euro cents.

Earnings season

A number of companies will release their financial results today including BlueScope Steel (ASX:BSL) Fortescue Metals (ASX:FMG),) and Spark Infrastructure (ASX:SKI)

Company news

Rural Funds Group (ASX:RFF) says it has completed the acquisition of three cattle properties in Queensland. The portfolio manager has also received the go-ahead to add an extension of 1,000 hectares to its existing lease of a property with Olam Orchards.
Shares in Rural Funds last traded 0.61 per cent lower at $1.64.

IMF Bentham Limited (ASX:IMF) says it has agreed fund a further matter in the United States via its wholly owned subsidiary there. The matter involves a commercial dispute in a US state court and IMF is expecting an initial claims value of $25 million.
Shares in IMF Bentham last traded steady at $1.66.

Ex-dividends

One company is going ex-dividend today: Domino’s Pizza Enterprises (ASX:DMP) will pay 38.8 cents with seventy per cent franking.

Commodities

Gold has shed $11.00 to $US1,346 an ounce for the December contract on Comex. Silver has slipped 42 cents to $19.32 for September. Copper is steady at $2.18. Oil is up 26 cents to $US49.11 a barrel for October light crude in New York.
 

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