The Australian share market is set to open higher this morning, following positive leads from Wall Street.
Friday was a terrible day for US shares as they suffered their biggest day of losses since the UK’s Brexit vote in June. This sell-off was a reaction to hawkish comments made to a Federal Reserve member about raising interest rates in September.
However, it was a different story yesterday. US shares surged after dovish comments were made by the Fed Governor, Lael Brainard. Ms Brainard warned against raising interest rates too quickly, while economic progress continues, and that it would be wise for the Fed to keep monetary policy “loose”. Based on these comments, investors are having more doubts about whether the Fed will raise interest rates next week.
MarketsWall Street closed higher overnight: The Dow Jones gained 1.3 per cent to close at 18,325, the S&P 500 was up 1.5 per cent to close at 2,159 and the NASDAQ added 1.7 per cent to close at 5,212.
European markets closed lower: London’s FTSE dropped 1.1 per cent, Paris fell 1.2 per cent and Frankfurt lost 1.3 per cent.
Asian markets were down as well: the Nikkei slipped 1.7 per cent, the Hang Seng dropped 3.4 per cent, and the Shanghai Composite fell 1.9 per cent.
The Australian share market closed lower yesterday: The S&P/ASX 200 Index closed 120 points down to finish at 5220. And on the futures market, this morning the SPI is up 79 points.
CurrenciesThe Australian Dollar at 7:20AM was buying $US75.67 cents, 56.73 Pence Sterling, 77.07 Yen and 67.34 Euro cents.
Local economic newsLater today, NAB will release its Business Confidence Survey for the month of August.
Company newsOil Search
(ASX:OSH) has entered a deal to acquire a 40% interest in two licences in the deep water section of the Gulf of Papua, 150 km south of Port Moresby. Oil Search says there is significant gas potential in that area. ExxonMobile will also acquire a 40% interest, while Gini Energy will retain a 20% interest in each licence. Shares in Oil Search closed 2.66 per cent down at $6.58.
Australis Oil & Gas
(ASX:ATS) has released its interim financial report for the half year ended 30 June 2016. The company, which listed on the ASX in July, posted a loss of $4.9 million, and says $920,000 from that figure was due to a non-recurring expense associated with the IPO. Australis says it has a cash position of $32 million at the end of August. Shares in Australis closed 2.04 per cent up at 25 cents.
Ex-dividends
CommoditiesGold has dropped $3.40 to $US1,331 an ounce for the December contract on Comex.
Silver has lost $0.19 to $19.18 for December.
Copper has risen by $0.01 to $2.11 a pound for December.
Oil has gained $0.16 to $US46.62 a barrel for October light crude.
