The Australian share market is set to retreat at the open, following Wall Street’s softening. US stocks closed lower after the oil prices sank over 2 per cent to a 9-month low, entering a bear market on the back of mounting supply concerns. That left the energy sector with a blow and it fell 1.3 per cent.
Across the three major US indicies, the Dow Jones, the S&P 500 and the tech heavy Nadasq all pulled back. At a sector level, healthcare and utilities were the only shiners. But, it is also important to note, just 24 hours ago the Dow and the S&P hit all time highs.
There is no Australian economic news out today, so investors will be eyeing company news closely. We will of course bring you news as it comes to light.
US economic newsThe current account deficit (CAD) rose by 2.4 per cent in the March quarter to $116.8 billion. It’s the highest level of CA debt the US has seen since a year ago. Last quarter, the December quarter saw a current account deficit of $114 billion.
The current account includes investment flows, plus trade in merchandise and services. President Donald Trump vowed to reduce the trade deficit, as it costs US factory jobs and reflects unfair trading partner practices.
MarketsWall Street closed lower on Tuesday: The Dow Jones Industrial Average fell 0.3 per cent to close at 21,467, the S&P 500 lost 0.7 per cent to close at 2,437 and the NASDAQ slipped 0.8 per cent to close at 6,188.
European markets also closed lower: London’s FTSE fell 0.7 per cent, Paris lost 0.3 per cent and Frankfurt fell 0.6 per cent.
Asian markets closed mixed: Tokyo’s Nikkei added 0.8 per cent, Hong Kong’s Hang Seng fell 0.3 per cent, and China’s Shanghai Composite slipped 0.1 per cent.
And back home, the Australian share market closed lower on Tuesday: At the closing bell, The S&P/ASX 200 Index closed 48 points lower or 0.8 per cent to finish at 5,757. On the futures market the SPI is 29 points down.
Company newsThe Western Australian Government has confirmed Vimy Resources Limited
(ASX:VMY)’s Mulga Rock Project is allowed to proceed. The company’s Mulga Rock Uranium Project is over 200 kilometers northeast of Kalgoorlie. The project was granted State Ministerial approval and will be legally entitled to obtain all secondary approvals. Vimy says the announcement will help it underpin the required investments to bring the project into production and create jobs in WA. Shares in Vimy Resources Limited
(ASX:VMY) last traded at $0.12.
Currencies Tthe Australian Dollar at 7:30AM was buying 75.78 US cents, 60.06 Pence Sterling, 84.48 Yen and 68.08 Euro cents.
Commodities Gold has fallen $2.60 to $US1,244 an ounce.
Silver has lost 7 cents to $US16.43 an ounce.
And Oil has plummeted $1.07 to $US43.36 a barrel.
