Tech slides on Wall St: ASX tipped for higher start

Market Reports

by Roma Christian

The Australian share market is tipped to open somewhat higher, with the futures index pointing to a 19 point gain.

It comes despite Wall Street closing in the red yesterday, as selling pressures returned to large-cap technology stocks.

Shares in Alphabet fell after being downgraded by analysts, with Facebook, Amazon, Apple and Snap also closing lower.

Investors also continued to digest the Fed’s decision to raise interest rates.

The Dow Jones fell about 15 points, with the S&P 500 and the Nasdaq also falling.

Oil prices dropped to a six week low, due to high global inventories and doubts about OPEC’s ability to action production cuts.

US economic news

The US Philadelphia Fed Index fell to 27.6 in June, beating the reading of 24 expected. The index shows the direction of overall business activity in the manufacturing sector. The drop follows a reading of 38.8 in May.

US industrial production rose 2.2 per cent in May, lower than forecasts of 2.5 per cent. It comes following a downwardly revised rise of 2.1 per cent in April. Despite this, overall it is the biggest annual increase since January 2015, with mining increasing 8.3 per cent.

Markets

The Dow Jones Industrial average lost 0.1 per cent to close at 21,360, the S&P 500 fell 0.2 per cent to close at 2,432 and the NASDAQ slipped 0.5 per cent to close at 6,166.

European markets closed lower: London’s FTSE fell 0.7 per cent, Paris lost 0.5 per cent and Frankfurt slipped 0.9 per cent.

Asian markets closed mixed: Tokyo’s Nikkei lost 0.3 per cent, Hong Kong’s Hang Seng fell 1.2 per cent and China’s Shanghai Composite rose 0.1 per cent.

And back home, the Australian share market closed lower yesterday: The S&P/ASX 200 Index closed 71 points down to finish at 5,763. On the futures market, the SPI is 19 points up.

Company news

Westgold Resources Limited (ASX:WGX) has advised it poured its first gold at Fortnum Gold Plant, based near Meekatharra, West Australia. The gold producer says it comes following their announcement on 8 June 2017, which informed of the successful commissioning of the Fortnum Gold Plant. Westgold Resources says it is continuing to ramp up to nameplate capacity, with all plant process parts and infrastructure fully commissioned and operating. Shares in Westgold Resources Limited (ASX:WGX) closed almost 1 per cent lower to $2.00.

Currencies 

The Australian Dollar at 7.30AM was buying 75.83 US cents, 59.50 Pence Stirling, 84.08 Yen and 68.03 Euro cents.

Commodities

Gold has lost $20.40 to $US1,256 an ounce.
Silver has lost 42 cents to $US16.72 an ounce.
Oil has dropped 46 cents to $US44.47 a barrel.