Pedal to the metal: Aus shares to open higher

Market Reports

by Jessica Amir

The Australian share market looks to open back in the black, with the SPI futures index pointing up after base metals rebounded in London. Copper touched a two month high over concerns of potential over supply, while Aluminium, Zinc, Nickel, led and tin all advanced. So too, did oil and Gold.

US stocks closed mostly lower, but recorded monthly gains for January’s close, as investors digested US President Donald Trump’s latest policies. The S&P 500 slipped lower with Industrials leading the decliners, while The Nasdaq gained, thanks to a rise in biotechs after Trump met with several health care executives.

US economic news

-The US Conference Board reported US Consumer confidence for January was knocked lower to 111.8, down from its 15-year high in December. It was to the disappointment of economists, who tipped the index would reach 113 in January.

-US home prices rose 5.6% in November, according to the latest reading from S&P’s US Case Shiller Home Price Index. The rise was higher than economists expected and came on the back of higher disposable incomes

-The US Fed Reserve are holding their meeting on Wednesday, with economists tipping the Fed will keep rates steady as it awaits President Donald Trump’s economic plan.

Lcal economic news

We can expect CoreLogic to report on House Prices for January and the AIG Manufacturing Index for January.

Markets

Wall Street closed mixed yesterday: The Dow Jones Industrial Average lost 0.54 per cent to close at 19,864, the S&P 500 fell 0.09 per cent to close at 2,279 and the NASDAQ gained 0.02 per cent to close at 5,615.

European markets closed lower: London’s FTSE lost 0.27 per cent, Paris fell 0.75 per cent and Frankfurt lost 1.25 per cent.

Asian markets closed mixed: Tokyo’s Nikkei lost 1.69 per cent, Hong Kong’s Hang Seng fell 0.06 per cent, and China’s Shanghai Composite gained 0.31 per cent.

And back home, the Australian share market closed lower yesterday: The S&P/ASX 200 Index closed 41 points down to finish at 5,621. On the futures market the SPI is 20 higher.

Company news

Trek Metals Limited (ASX:TKM) has announced its non-executive director Mr Marinko Vidovich has resigned, effective yesterday 31 January 2017. The explorer and developer of mineral properties in Zambia South Africa says Mr Marinko will remain close to the company. He will assist Trek in considering alternatives to crystallising value in the company's Kangaluwi Copper Project in Zambia. Share in Trek Metals Limited (ASX:TKM) last traded at 3 cents.

Reporting season

We can watch out for consumer and industrial product company, GUD Holdings Limited (ASX:GUD) which will report its first half 2017 results today.  

Ex-dividends

Two companies are going ex-dividend today:
-Ozgrowth Limited (ASX: OZG) paying 0.25 of a cent, fully franked and
-Westoz Investment Co Limited (ASX:WIC) paying 3 cents fully franked.

Currencies

The Australian Dollar at 8.30am was buying 75.87 US cents, 60.32 Pence Sterling, 85.69 Yen and 70.29 Euro cents.

Commodities

Gold has gained $16.50 to $US1,213 an ounce. 
Silver has climbed $0.42 to $17.57 an ounce.
Oil has added $0.26 to $US52.89 a barrel.
 

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