The Australian share market is set to open slightly lower ahead of the RBA’s monthly board meeting today.
It comes as Wall Street closed in the red, after Apple shares fell 1 per cent when the stock was downgraded by an analyst. On a whole though, US equities did manage to maintain near record levels.
The Dow Jones lost about 20 points, with Apple adding the most losses. The S&P 500 slipped with materials and utilities lagging, while the tech heavy Nasdaq reached an all-time intraday high, before closing a little lower.
Gold has continued to rally and hit its highest level since late April, while Oil prices have fallen after Saudi Arabia and other Arab states cut ties with Qatar.
US economic news The non-manufacturing sector grew in May for the 89th consecutive month. The Institute for Supply Management reported the US ISM services index hit 56.9 in May, just shy of the 57 expected. It comes as the reading fell from the 57.5 mark in April.
US the non-farm productivity rate has held unchanged for the first quarter of 2017. For the December quarter, US worker productivity fell to a 0.6 per cent annualised pace.
Local economic newsToday the will RBA board will meet, with expectations interest rates will hold at 1.50 per cent.
Late morning, the ABS is expected to report on the balance of payments figures including the Current Account Deficit figure for the March quarter.
MarketsWall Street closed lower on Monday: The Dow Jones Industrial Average fell 0.1 per cent to close at 21,184, the S&P 500 slipped 0.1 per cent to close at 2,436 and the NASDAQ slid 0.2 per cent to close at 6,296.
European markets closed lower: London’s FTSE fell 0.3 per cent, Paris lost 0.7 per cent and Germany’s market was closed for a public holiday.
Asian markets also closed lower: Tokyo’s Nikkei fell 0.03 per cent, Hong Kong’s Hang Seng lost 0.2 per cent, and China’s Shanghai Composite softened by 0.5 per cent.
And back home, the Australian share market closed lower on Monday: The S&P/ASX 200 Index closed 33 points down or by 0.6 per cent to finish at 5,755.
On the futures market the SPI is 4 points lower.
Company news 8IP Emerging Companies Limited
(ASX:8EC) has estimated its gross portfolio return, before all fees, expenses and tax was about 2 per cent for the month of May 2017. The small cap fund manager says if it realises a convertible note held, the estimated cumulative portfolio performance would be increased by 0.4 per cent. The estimates however, should only be considered as a guide to the actual performance. 8IP Emerging Companies Limited
(ASX:8EC) last traded flat at 94.5 cents.
Ex-dividendsOne company is going ex-dividend today: Enero Group Limited
(ASX:EGG) is paying 5 cents fully franked.
Currencies Australian Dollar at 7:30AM was buying 74.86 US cents, 58.02 Pence Sterling, 82.72 Yen and 66.52 Euro cents.
Commodities Gold has gained $1.70 to $US1,282 an ounce.
Silver has added 2 cents to $US17.55 an ounce.
And Oil has fallen by 27 cents to $US47.39 a barrel.
