Wednesday worries: downward open for ASX

Market Reports

by David Chau

The Australian share market is expected to dip this morning, ahead of today’s Consumer Price Index data being released.

There have been weak leads from Wall Street overnight, due to mixed earnings results. For example, 3M and Caterpillar beat their bottom lines estimates, but did not meet revenue targets.

Also, oil prices fell overnight, which impacted the performance of Energy shares. In the US, six out of ten sectors finished in the red – and consumer discretionary stocks were hit the hardest.

US economic news

The Consumer Confidence Index hit 98.6 in October, which was below expectations. In fact, economists were predicting it would reach 101.5. The latest result is down from the September figure, which was at 104.1.

US home prices have risen slightly. In August, the US National Home Price Index, rose 5.3% on an annual basis, up from 5.0% in July.

Markets

Wall Street closed lower overnight: The Dow Jones lost 0.3 per cent to close at 18,169, the S&P 500 was down 0.4 per cent to close at 2,143 and the NASDAQ retreated 0.5% to 5,283.

European markets finished mixed: London’s FTSE was up 0.5%, Paris slipped 0.3 per cent and Frankfurt was down marginally by 0.04 per cent.

Asian markets closed mixed as well: the Nikkei added 0.8 per cent, the Hang Seng lost 0.2 per cent, and the Shanghai Composite was up 0.1%.

The Australian share market closed higher yesterday: The ASX 200 closed 34 points up to finish at 5,443. On the futures market the SPI is down 12 points.

Currencies

The Australian Dollar at 7:30AM was buying $US76.44 cents, 62.76 Pence, 79.66 Yen and 70.24 Euro cents.

Local economic news

ABS will release Consumer Price Index data for the September quarter

In the June quarter, headline CPI rose by 0.4%, while the year-on-year increase was just 1%.

Company news

Steve Doyle has been appointed the new CEO of Lovisa Holdings Ltd (ASX:LOV), a fashion and jewellery accessories company. Lovisa says its store network has increased to 262 stores. Also, the company says it had strong September quarter trading figures, with same store sales growth above the annual 3 to 5% guidance that it anticipated. Shares in Lovisa closed 9.57% higher at $3.78.

Life sciences company, OBJ Ltd (ASX:OBJ) has entered an additional licensing deal with consumer goods giant, Procter & Gamble. Previously, OBJ licensed its ‘Wave 1’ technology to P&G, which was launched as SKII Eye Wand and Olay Eye Wand. In the last 2 years, both companies have been developing a Wave II device, which uses OBJ’s magnetic microarray technology. OBJ has confirmed that they’ve now agreed on licensing terms for Wave II. Shares in OBJ are down 2.6% at 7.5 cents.

Ex-dividends

One company is going ex-dividend today. Countplus will pay a fully franked dividend of 2 cents per share.

Commodities

Gold has gained $11.10 to $US1,275 an ounce.
Silver has gained 16 cents to $17.76.
Copper is up 4 cents at $2.14 cents a pound.
Oil is down $0.73 to US$49.79 per barrel.

David Chau

Finance News Network
David joined FNN in April 2016. In addition to presenting the Market Outlook and latest business news stories, David interviews senior economists and CEOs of ASX-listed companies. Prior to working for FNN, David was a litigation lawyer.