Global markets have closed in negative territory for the second day as concerns over North Korea continue. President Donald Trump announced his previous statement was not tough enough. It comes as he told press that North Korean threats would be met with ‘fire and fury like the world has never seen’
The Dow Jones fell about 205 points while the S&P fell 1.45 per cent, but the Nasdaq was the hardest hit. Online giants, Apple, Alphabet, Amazon and Netflix also dragged down the tech heavy index.
Meantime, on the commodity front oil prices fell 2 per cent while gold has maintained its two month high.
Taking all of that into consideration our Australian share market is set to plunge at the open.
US economic newsThe US Producer Price Index has seen its biggest fall in nearly a year. It comes as the Labor Department reported final demand slipped 0.1 per cent in July, disappointing economists who expected a 0.1 per cent gain. It follows June’s 0.1 per cent rise. It comes as costs in energy and services weighed on the index.
Local economic news All eyes today will be on the half-yearly testimony by RBA Governor Phillip Lowe. It’s actually the economic highlight of the week as Members of House of Representatives Economics Committee pose questions to the Governor, and it could provide some insight into to the direction of monetary policy.
The ABS will also give us a pulse check on lending finance for June, which includes housing, personal, business & lease loan data. We can expect that data a 11.30am.
MarketsWall Street closed lower yesterday: The Dow Jones Industrial Average lost 0.93 per cent to close at 21,844, the S&P 500 fell 1.45 per cent to close at 2,438 and the NASDAQ lost 2.13 per cent to close at 6,217.
European markets closed lower: London’s FTSE sank 1.4 per cent, Paris lost 0.6 per cent and Frankfurt dipped 1.2 per cent.
Asian markets closed in the red: Tokyo’s Nikkei fell 0.1 per cent, Hong Kong’s Hang Seng dropped 1.1 per cent, and China’s Shanghai Composite lost 0.4 per cent.
And back home, the Australian share market closed lower yesterday: The S&P/ASX 200 Index closed 5 points down to finish at 5,761.
On the futures market the SPI is 66 points down.
To company newsCadence Capital
(ASX:CDM) has announced record profit after tax of $37 million for the financial year ending 30 June 2017, which is a rise of 220 per cent on last year. The Australian equity fund manager’s bolstered results came on the back of both its domestic and international holdings performing well, generating stronger profits and outperformance. Cadence Capital also outperformed the All Ordinaries by 4.1 per cent over the past 12 months. Shares in Cadence Capital
(ASX:CDM) last traded 0.79 per cent higher yesterday to $1.27.
Reporting seasonWe can watch out for Baby Bunting Group
(ASX:BBN), News Corp (ASX: NWS), and REA Group
(ASX:REA) which are set to report financial results today.
Ex-dividends5 companies are going ex-dividend today. 8I Holdings
(ASX:8IH) is paying 0.25 cents unfranked, Managed Accounts
(ASX:MGP) is paying 0.2 cents unfranked, Scentre Group
(ASX:SCG) is paying 10.86 cents unfranked, TABCORP
(ASX:TAH) is paying 12.5 cents fully franked, and Westfield Corporation
(ASX:WFD) is paying 12.75 cents unfranked.
CurrenciesAustralian Dollar at 7:45AM was buying 78.74 US cents, 60.69 Pence Sterling, 85.93 Yen and 66.91 Euro cents.
Commodities Gold has gained $12.80 to $US1,292 an ounce.
Silver has add3ed $0.25 to $US17.11.
Oil has fallen $1.05 to $US48.51 a barrel.
