Lukewarm US leads: Aus shares to open flat

Market Reports

by Jessica Ellerm

Following soft leads from US markets, the Australian share market looks set to open flat. Markets were lukewarm on Friday, as investors tried to make sense of mixed messaging around Trump’s tax plans and the possibility corporate tax cuts could be further delayed. The markets have had a stellar run off the back of Trump’s campaigning on lower taxes, however confidence the government can now execute is weakening.

US economic news

Consumer sentiment dipped to 97.8 in November, down from 100.7 in the previous month. The drop off in confidence is mainly being attributed to expected interest rate hikes in the coming year and the prospect of rising inflation. Wholesale inventories rose 0.3 per cent in September, month on month. The modest gain came off the back of a 0.8 per cent jump in August, which was the highest in 8 months.

Economic news

Today the RBA will release September’s credit card and lending data. On Tuesday NAB will release its business confidence survey, on Wednesday Westpac will release its consumer sentiment index, on Thursday the ABS will post employment change data, and new motor vehicle sales data from the ABS will wrap the week up on Friday.

Markets

Wall Street closed mixed on Friday: The Dow Jones Industrial Average lost 0.2 per cent to close at 23,422, the S&P 500 lost 0.1 per cent to close at 2,582 and the NASDAQ gained 0.01 per cent to close at 6,751.

European markets closed lower: London’s FTSE fell 0.7 per cent, Paris lost 0.5 per cent and Frankfurt slipped 0.4 per cent.

Asian markets closed mixed: Tokyo’s Nikkei dropped 0.8 per cent, Hong Kong’s Hang Seng fell 0.1 per cent, and China’s Shanghai Composite rose 0.1 per cent.

The Australian share market closed lower on Friday: The S&P/ASX 200 Index closed 20 points down to finish at 6,029. On the futures market the SPI is 1 point down.

Company news

Bega Cheese Limited (ASX:BGA) has announced it has made an unconditional takeover offer for Queensland peanut grower Peanut Company of Australia. Bega is offering close to $12 million to acquire the 90 year old nut business, as it seeks to grow its stable of food brands. Shares in Bega Cheese Limited (ASX:BGA) last traded 0.41 per cent lower at $7.29.

Ex-dividends

4 companies are going ex-dividend today: Westpac Banking Coporation (ASX:WBC) will pay 94 cents fully franked, Australia and New Zealand Banking Group (ASX:ANZ) will pay 80 cents also fully franked. US Select Private Opportunities Fund (ASX:USF) will pay 18 cents unfranked and US Select Private Opportunities Fund II (ASX:USG) will pay 23 cents, also unfranked.

Currencies

The Australian Dollar at 7:40AM was buying $US76.52 cents, 58.04 Pence Sterling, 86.91 Yen and 65.63 Euro cents.

Commodities

Gold has lost $13.30 to $US1,274 an ounce.
Silver is down $0.02 to $US16.87 an ounce.
Oil has lost $0.41 to $US56.98 a barrel.
  

Jessica Ellerm

Finance News Network
Jessica joined FNN in April 2016 and presents the Australian Share Market Outlook, and reports on the morning's leading business stories. Alongside FNN Jessica is a fintech industry commentator, writing for her own blog and a number of international online publications.