Despite a steady lead from US markets, the Australian share market looks set to open lower this morning, with a lower futures index.
GE pulled the market down as the worst performing stock with a more than 7 per cent loss following its lower than expected guidance for 2018.
Investors are uncertain if the tax reform will go through this year, with further concerns the corporate tax cut could be delayed until 2019.
Boeing was the biggest contributor to the Dow, after Emirates announced a $15 billion order of 40 Boeing planes.
Despite corporate tax cut worries, the greenback was on track, ahead of inflation and retail sales numbers which will be out later this week, which could influence the Federal Reserve’s decision on future rate increases.
On the commodities front, oil is tracking lower while gold is up and iron ore is tracking 0.8 per cent higher.
Local economic news
NAB’s business confidence figures for October will be released. September saw a 7 per cent rise, above market expectations, after a 5 per cent increase the previous month. The construction industry is leading the way, with most industries not far behind, except for retail which continues to face tough market conditions.
Wall Street closed slightly higher yesterday: The Dow Jones Industrial Average gained 0.1 per cent to close at 23,440, the S&P 500 added 0.1 per cent to close at 2,585 and the NASDAQ gained 0.1 per cent to close at 6,758.
European markets closed lower : London’s FTSE lost 0.2 per cent, Paris dropped 0.7 per cent and Frankfurt declined 0.4 per cent.
Asian markets closed mixed: Tokyo’s Nikkei dropped 1.3 per cent, Hong Kong’s Hang Seng added 0.2 per cent, and China’s Shanghai Composite gained 0.4 per cent.
And back home, the Australian share market closed higher yesterday: The S&P/ASX 200 Index closed 8 points lower to finish at 6,022.
On the futures market the SPI is 22 points down.
Mineral resources company CuDeco (ASX:CDU) has entered into a secured loan facility agreement with China Oceanwide International Financial Limited for HKD100 million. The fully drawn loan facility has a 6-month term. The funds repay a HKD40 million short term loan earlier than its due date of January 2018 with the remaining balance being applied towards working capital requirements. In addition, CuDeco has repaid an HKD80 million short term loan which was due for repayment on 31 December 2017. Shares in CuDeco (ASX:CDU) closed 2.94 per cent lower to 33 cents.
Insurance company Tower (ASX:TWR) has reported a full year loss of $8 million for the 2017 financial year, impacted by its Canterbury provisions, the Kaikoura earthquake and corporate transaction activity. This is an improvement of $13.5 million on the prior year. Underlying profit after tax was $18 million. Shares in Tower (ASX:TWR) were on a trading halt yesterday and last traded at 70 cents.
2 companies are going ex-dividend today:
Orica (ASX:ORI) is paying 28 cents unfranked and Webster (ASX:WBA) is paying 3 cents fully franked.
One Australian Dollar at 8:35AM was buying 76.26 US cents, 58.15 Pence Sterling, 86.63 Yen and 65.38 Euro cents.
Gold has gained $3.70 to $US1,278 an ounce.
Silver has gained $0.17 to $US17.05 an ounce.
Oil has lost $0.05 to $US56.93 a barrel.