The Australian stock market is set to slide for the second day this week, after US equity markets posted their worst trading day for the year, as US President Donald Trump’s travel ban sent jitters through the markets.
Trump signed an executive order that temporarily bans entry into the US from seven mostly, Muslim nations. While all sectors in the US dived, Airline stocks tumbled. Energy stocks were hit the hardest, when the oil price fell.
The Dow Jones Industrial Average back peddled 120 points, after sliding over 223 points, dropping below the 20,000 point milestone. Goldman Sachs contributed the most losses for the second day running. While the S&P500 dropped 0.6%.
US economic newsThe US Commence Department reported US Personal Income for December rose by 0.3%. The income rise disappointed economist who were expecting a 0.4% climb.
The US National Association of Realtors reported US Pending Home Sales for Dec jumped 1.6%, based on contracts signed last month. To the surprise of economists, it was 0.6% more than expected.
Local economic news due out todayWe can expect the RBA to release its figures for Private Sector Credit in December.
NAB, will release its Business Confidence stats for also for Dec. Both are set to report at 11.30am.
Markets Wall Street closed down yesterday: The Dow Jones Industrial Average lost 0.61 per cent to close at 19,971, the S&P 500 dipped 0.6 per cent to close at 2,281 and the NASDAQ fell 0.83 per cent to close at 5,614.
European markets closed lower: London’s FTSE shed 0.92 per cent, Paris lost 1.14 per cent and Frankfurt fell 1.12 per cent.
To Asian markets, whist Chinese markets are on holiday: Tokyo’s Nikkei lost 0.5 per cent,
And back home, the Australian share market closed lower yesterday: The S&P/ASX 200 Index closed 52 points lower to finish at 5,662. On the futures market the SPI is 5 points down.
Company newsCoal of Africa Limited
(ASX:CZA) has announced its received environmental approval for its coking and thermal coal project, Vele Colliery. The coal explorer says it was given approval for stream diversion and associated infrastructural activities at the South African site. Once a final regulatory approval has been received, the board will assess forecasted global coal prices for the project. Coal of Africa Limited last traded at 5 cents.
Reporting seasonWe can look out for education course provider, Navitas Limited
(ASX:NVT) to report its first half 2017 results today.
Currencies The Australian Dollar at 8.30am was buying 75.57 us cents, 60.53 Pence Sterling, 85.97 Yen and 70.65 Euro cents.
CommoditiesGold has gained $6.00 to $US1,197 an ounce.
Silver has fallen by 2 cents to $17.12 an ounce.
Oil has lost 52 cents to $US52.65 a barrel
