Following negative leads from US markets, the Australian share market looks set to open slightly lower. While US benchmarks were lower at the close of Thursday trade, retail stocks were a rare bright spot in what has been a tumultuous week. Better than expected earnings across the the sector helped push market retail heavyweights Abercrombie and Fitch, Williams-Sonoma and Sears higher.
However it wasn’t all roses. The Amazon effect spooked the consumer staples sector after it announced it would drop prices at Whole Foods Market following the completion of the acquisition this coming Monday.
US economic newsExisting home sales slumped in July, dropping by 1.3 per cent to a seasonally adjusted annual rate of 5.44M. It is the lowest reading since August of last year. Rising house prices and a lack of stock is shaping the market. Unemployment claims also rose last week by 2000, with 234 thousand Americans reported as filing for benefits.
Markets Wall Street closed lower yesterday: The Dow Jones Industrial Average lost 0.1 per cent to close at 21,783, the S&P 500 fell 0.2 per cent to close at 2,439 and the NASDAQ dropped 0.1 per cent to close at 6,271
European markets closed mixed: London’s FTSE up 0.3 per cent, Paris was flat and Frankfurt rose 0.1 per cent.
Asian markets closed mixed: Tokyo’s Nikkei fell 0.4 per cent Hong Kong’s Hang Seng lifted 0.4 per cent, and China’s Shanghai Composite slipped 0.5 per cent.
The Australian share market closed higher yesterday: The S&P/ASX 200 Index closed 8 points up to finish at 5,745. On the futures market the SPI is 4 points down.
Company newsPioneer Credit Limited
(ASX:PNC) has announced a record profit for FY17, booking $10.75M after tax. The credit provider saw strong revenue growth, up 18 per cent to $56.3M, while EBITDA posted a 12 per cent increase at $35M. Key operational highlights included an expansion into the New Zealand market through a local bank partnership and a strategic partnership with SME loyalty platform Rewardle. Pioneer will pay a fully franked dividend of 5.28 cents to shareholders. Shares in Pioneer Credit Limited
(ASX:PNC) last traded at 0.77% lower at $2.58.
Reporting seasonAround 22 companies are expected to report today. Big names to keep an eye out for include Qantas Airways
(ASX:QAN), Cabcharge Australia
(ASX:CAB), Medibank Private
(ASX:MPL) and Automotive Holdings Group
(ASX:AHG).
Ex-dividends9 companies are going ex-dividend today: Beach Energy
(ASX:BPT) is paying 1 cent fully franked, Fairfax Media
(ASX:FXJ) is paying 2 cents fully franked and Ingenia Group
(ASX:INA) is paying 5.1 cents unfranked.
CurrenciesThe Australian Dollar at 7:40AM was buying $US78.99 cents, 61.73 Pence Sterling, 86.52 Yen and 66.96 Euro cents.
CommoditiesGold has lost $3.20 to $US1,292 an ounce
Silver has lost $0.09 to $US17.04 an ounce
Oil has lost $0.79 to $US47.62 a barrel.
