End to QE in sight: Aus shares to open flat

Market Reports

by Jessica Ellerm

Despite mainly positive leads from US markets, the Australian share market looks set to open flat. Both the Dow and the SP500 closed with record highs, as news that the Fed would begin to unwind its balance sheet hit the trading floor. The announcement pushed financial stocks higher, while news benchmark interest rates would remain at around 1 per cent led equities in other sectors to retreat slightly.

US economic news

Data released by the National Association of Realtors showed existing home sales dropped in August compared to July, down 1.7 per cent to a seasonally adjusted rate of 5.35 million. The move surprised analysts, who were expecting a 0.3 per cent uptick for the month. Affordability and a depressed market in Houston following tropical storm Harvey were considered contributing factors in the results.

Local economic news

Due out today is the RBA’s latest bulletin report, covering economic and financial developments as well as the Bank's operations.

Markets

Wall Street closed mixed yesterday: The Dow Jones Industrial Average gained 0.2 per cent to close at 22,413, the S&P 500 added 0.1 per cent to close at 2,508 and the NASDAQ fell 0.1 per cent to close at 6,456.

European markets closed mixed: London’s FTSE dropped 0.1 per cent, Paris lifted 0.1 per cent and Frankfurt gained 0.1 per cent.

Asian markets closed up: Tokyo’s Nikkei added 0.1 per cent, Hong Kong’s Hang Seng rose 0.3 per cent, as did China’s Shanghai Composite.

The Australian share market closed lower yesterday: The S&P/ASX 200 Index closed 4 points down to finish at 5,709. On the futures market the SPI is 3 points down.

Company news

Medibank (ASX:MPL) has indicated it will defend itself following the ACCC’s decision to appeal a Federal Court ruling, which found the health insurer had not engaged in misleading and deceptive conduct with customers regarding changes to benefits. CEO Craig Drummond has indicated his disappointment in the ACCC’s appeal, stating Medibank defended the case because they firmly believed that they had not acted unconscionably. Shares in Medibank (ASX:MPL) last traded 1 per cent lower at $2.96.

Ex-dividends




Currencies

The Australian Dollar at 7:30AM was buying $US80.28 cents, 59.52 Pence Sterling, 90.15 Yen and 67.53 Euro cents.

Commodities

Gold has lost $6.10 to $US1305 an ounce.
Silver has fallen $0.06 to $US17.21 an ounce.
Oil has gained $0.83 to $US50.73 a barrel.
 

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