The local share market set to open higher when the ASX opens for business this morning. Wall Street will provide a positive lead, as it almost reached record highs overnight. Every US sector finished in positive territory, with Materials and Financials being the strongest performers.
Investors will be paying close attention to the jobs report, due out on Friday – the results of which may influence the Fed to raise interest rates as soon as next month.
US economic newsConsumer spending rose, for the fourth consecutive month, to 0.3% in July, which was in line with expectations. Consumer spending accounts for more than two-thirds of US economic activity, and this increase was backed by strong demand for automobiles.
MarketsWall Street closed higher on Monday: The Dow Jones Industrial Average gained 0.6 per cent to close at 18,503, the S&P 500 added 0.5 per cent to close at 2,180 and the NASDAQ gained 0.3 per cent to close at 5,232.
European markets closed lower: London’s FTSE was closed as it was public holiday, both Paris and Frankfurt lost 0.4 per cent.
Asian markets closed mixed: Tokyo’s Nikkei added 2.3 per cent, Hong Kong’s Hang Seng fell 0.4 per cent, and China’s Shanghai Composite was flat.
The Australian share market closed lower yesterday: The S&P/ASX 200 Index closed 46 points down to finish at 5,469. This morning, on the futures market, the SPI is 18 points up.
CurrenciesThe Australian Dollar at 7:20AM was buying $US75.71 cents, 57.82 Pence Sterling, 77.17 Yen and 67.68 Euro cents.
Economic newsThe Australian Bureau of Statistics will release Building Approvals data for July 2016. In June, the number of dwellings approved fell 0.9 per cent.
Earnings seasonA few companies including Flexigroup, Ramsay Health Care and Slater & Gordon will release their financial results today.
Company newsThere has been some good news for shareholders of Fortescue Metals Group
(ASX:FMG) shareholders. The big three credit rating agencies (S&P Global, Fitch and Moody’s) have brightened up their outlook for the company – from negative to stable. Fitch says "Fortescue is now one of the lowest-cost iron-ore suppliers to Asia, mainly to China." Fortescue's credit rating also improved because it has cut production costs and repaid a large portion of debt over the last financial year.
Shares in Fortescue closed 0.2 per cent higher at $4.89.
US retailer, Lowe's Companies Inc, has lodged a case against Woolworths
(ASX:WOW) in the Federal Court of Australia, over the winding up of the Masters Home Improvement business. Lowe’s was a one-third joint venture partner with Woolworths in the failed Masters chain. Yesterday, Woolworth’s says it has yet to be served with the court documents.
Shares in Woolworth’s closed 0.76 per cent lower at $24.71.
Ex-dividendsA few companies are going ex-dividend today. Some of them include Bega Cheese, Boral, Greencross and SAI Global.
CommoditiesGold has gained $1.20 to $US1,327 an ounce for the December contract on Comex.
Silver has added $0.11 to $18.86 for September.
Copper has lost $0.01 to $2.08 a pound for September.
Oil has lost $0.66 to $US46.98 a barrel for October light crude in New York.
