Wall Street drops: Aus market to open lower

Market Reports

by Anna Napoli

Following weak leads from US markets, the Australian share market looks set to open lower. The Dow and the S&P 500 both fell following a testimony by new Federal Reserve Chair Jerome Powell. His address to congress signalled the Fed will keep raising interest rates to contain inflation.

Consumer discretionaries and telecommunications were among the worst performing sectors.

On the commodities front, oil has dropped slightly and gold is also down.

Taking all of this into consideraton, the ASX futures are pointing to a fall of 35 points. Yesterday the Australian share market closed 15 points higher yesterday S&P/ASX 200 Index closing at 6,057.

Local economic news
The Reserve Bank releases the monthly financial Aggregates which looks at private sector credit. Anaylsts expect that lending growth for January was modest.

Markets
To the figures from around the globe: Wall Street closed up lower yesterday: the Dow Jones Industrial Average lost 1.2 per cent to close at 25,410, the S&P 500 lost 1.3 per cent to close at 2,744 and the NASDAQ lost 1 per cent to close at 7,330.

European markets closed mostly lower: London’s FTSE 0.1 per cent, Paris closed flat and Frankfurt was 0.3 per cent lower.

Asian markets closed mixed: Tokyo’s Nikkei added 1.1 per cent, Hong Kong’s Hang Seng down 0.7 per cent, and China’s Shanghai Composite down1.1 per cent.

Company news

Film industry technology company Vista Group International (ASX:VGL) has reported its net profit after tax (NPAT) fell from $50 million to $10 million for the full year to December 2017.

Total revenue rose 20 per cent on last year to $107 million.

Its earnings (EBITDA) grew by 42 per cent to $25 million dollars.

The company declared a final dividend of 1.74 cents per share.

Shares in Vista Group (ASX:VGL) closed about 3.88 per cent higher yesterday to $2.41.

Reporting season

We can watch out for Adelaide Brighton (ASX:ABC), Bega Cheese(ASX:BGA) Ramsays Healthcare (ASX:RHC) (ASX:HVN) and Virgin Australia (ASX:VAH).

Ex-dividends

Fourteen companies are going ex dividend today: Carlton Investments (ASX:CIN) is paying 51 cents per share fully franked, Event Hospitality (ASX:EVT) is paying 21 cents per share fully franked, Perpetual (ASX:PPT) is paying $1.35 per share fully franked and Telstra (ASX:TSL) is paying 11 cents per share also fully franked.


 Currencies

One Australian Dollar is buying $US77.85 cents, 56 Pence Sterling, 83.59 Yen and 63.68 Euro cents.

Commodities

Gold has dropped $14 to $US1319 an ounce.
Silver has lost $0.20 to $US16.43 an ounce.
Oil has lost $1.01 to $US62.90 a barrel.

Cryptocurrencies

The three most traded cryptocurrencies are trading mixed: Bitcoin has gained 3.5 per cent to US$10,739, Tether fallen about 0.02 per cent to US$0.99, and Ethereum [pick based on market cap] has /gained about 1.4 per cent to US$882.