The Australian share market is set to open lower, after US (and global) sovereign bond yields rose, following the release of minutes from the European Central Bank’s June meeting.
The 10-year German Bund yield climbed above 0.5 per cent for the first time since January 2016, and the US 10 year Treasury yield jumped to 2.38 per cent.
It comes as Wall Street closed in the red, after technology stocks as Facebook, Tesla, Google and Alphabet all declined, pushing the tech sector down 0.8 per cent.
The Dow Jones lost about 158 points, with United Health, Apple and Walt Disney offering the most losses.
The S&P 500 fell 0.9 percent, with energy the second-worst performer, falling 1.8 per cent.
Meantime, oil prices rose 0.9 per cent higher, following reports that US commercial crude inventories fell by 6.3 million barrels, smashing forecasts of 2.3 million.
US economic newsThe Institute for Supply Management reported the US ISM services index hit 57.4 in June, exceeding expectations of 56.5. The reading shows the non-manufacturing sector grew, beating expectations for a fall. It follows 56.9 in May.
The ADP National Employment report showed that 158,000 jobs were added in June, below market expectations of 185,000. It is also well below the 230,000 jobs added in May.
Data released showed America’s trade gap narrowed to $46.5 billion in May, following a deficit of $47.6 billion in April. It was higher the $46.2 billion expected.
MarketsWall Street closed lower yesterday: The Dow Jones Industrial average lost 0.7 per cent to close at 21,320, the S&P 500 lost 0.9 per cent to close at 2,410 and the NASDAQ lost 1 per cent to close at 6,089.
European markets closed lower: London’s FTSE fell 0.4 per cent, Paris lost 0.5 per cent and Frankfurt fell 0.6 per cent.
Asian markets closed mixed: Tokyo’s Nikkei lost 0.4 per cent, Hong Kong’s Hang Seng fell 0.2 per cent and China’s Shanghai Composite rose 0.2 per cent.
The Australian share market closed lower yesterday: The S&P/ASX 200 Index closed 4 points down to finish at 5,759. On the futures market, the SPI is 23 points down.
Company newsOil Search Limited
(ASX:OSH) says drilling at its Muruk 1ST3 gas exploration well in the Papua New Guinea Highlands, will start in early 2018. The company says it is a good quality reservoir with high deliverability, and consistent with the Toro reservoirs in the Central Fold Belt. The company’s Rig 104 is being kept at Muruk 1, with well site preparations, for an appraisal well, targeted to start in late 2017. Shares in Oil Search Limited
(ASX:OSH) closed 1.34 per cent lower to $6.61.
Currencies The Australian Dollar at 7.30AM was buying 75.86 US cents, 58.49 Pence Stirling, 85.86 Yen and 66.42 Euro cents.
CommoditiesGold has gained $3 to $US1,225 an ounce.
Silver has gained 12 cents to $US16.02 an ounce.
Oil has jumped 20 cents to $US45.33 a barrel.
