The Australian share market will open lower, following weak leads from overseas – and ahead of the Reserve Bank’s interest rate decision this afternoon.
Wall Street finished lower this morning – with almost every sector in the red. The worst losses were sustained by Energy and Financials stocks.
This week, investors will be paying close attention as US President Donald Trump will meet Chinese President Xi Jinping for the time on Thursday and Friday. Both presidents are expected to talk about trade and what to do with North Korea, among other things.
US economic newsInstitute for Supply Management’s manufacturing index read for March hit 57.2, which was in line with expectations.
According to the Census Bureau, construction spending in the US rose 0.8% in February – which is its highest level in almost 11 years.
Autodata has released automobile sales figures which showed total sales of 16.6 million last month – which was less than expected.
Australian economic newsThe Australian Bureau of Statistics will release its international trade data (or import and exports data) for the month of February.
This afternoon, the Reserve Bank board will meet to discuss interest rates. It’s expected that the RBA will keep the official cash rate on hold at the record low 1.50%.
MarketsWall Street finished lower this morning: The Dow Jones Industrial Average fell 0.1% to 20,650. The S&P 500 was down 0.2% to 2,359 and the NASDAQ slipped 0.3% to 5,895.
European markets finished lower as well: London’s FTSE fell 0.6 per cent, Paris retreated 0.7 per cent, and Frankfurt was down almost 0.5%.
Asian markets finished higher: the Nikkei rose 0.4 per cent, the Hang Seng was up 0.6 per cent, and the Shanghai Composite was closed for a public holiday.
Yesterday, Australia’s ASX 200 lifted 8 points (or 0.1%) to close at 5,873.
This morning, on the Australian futures market the SPI is down 10 points.
Company newsTransurban has picked CIMIC Group Ltd’s
(ASX:CIM) company, CPB Contractors, as the preferred contractor to deliver the multi-billion dollar West Gate Tunnel Project in Victoria. This project is a 50:50 joint venture between CPB and John Holland. Subject to planning approvals, construction is expected to begin in 2018, and the project is expected to open to traffic in 2022. Yesterday, CIMIC shares closed 0.22% higher at $36.01.
Ex-dividendsClime Capital
(ASX:CAM) will pay 1.2 cents, fully franked.
Cover-More Group
(ASX:CVO) will pay 5 cents, fully franked.
Fonterra
(ASX:FSF) will pay 15.53 cents, unfranked.
CurrenciesThe Australian Dollar at 7:30AM was buying $US76.09 cents, 60.95 Pence Sterling, 84.39 Yen and 71.34 Euro cents.
Commodities Gold has gained $4.20 to $US1,255 an ounce.
Silver is up 2 cents to $18.28 an ounce.
Oil has lost $0.35 to $US50.25 a barrel.
