The Australian share market is set to open higher. Yesterday the Dow rallied after White House trade adviser Peter Navarro looked to play down the chances of a trade war.
The Australian dollar fell to a one-week low against a strengthening US dollar after comments from Donald Trump's new economic advisor Larry Kudlow that the president favours a stronger US dollar.
On the commodities front, gold is down and oil is up slightly.
Taking all of this into equation, the ASX futures are pointing to a 12 points gain. Yesterday the Australian share market closed lower with the S&P/ASX 200 Index closing 14 points lower at 5921.
Reserve Bank Deputy Governor Guy Debelle speaks at a Financial Risk Day event in Sydney, and in equities news Premier Investments releases its half year results.
Wall Street closed mixed yesterday: The Dow Jones Industrial Average gained 0.5 per cent to close at 24,874, the S&P 500 lost 0.1 per cent to close at 2,747 and the NASDAQ lost 0.2 per cent to close at 7,482.
European markets closed higher: London’s FTSE added 0.1 per cent, Paris gained 0.7 per cent and Frankfurt rose 0.9 per cent.
Asian markets closed mixed: Tokyo’s Nikkei added 0.1 per cent, Hong Kong’s Hang Seng gained 0.3 per cent, and China’s Shanghai Composite closed flat per cent.
Wesfarmers have announced an intention to demerge Coles into a new top 30 ASX listed company, if approved the demerger is expected to be completed in the 2019 financial year. Shareholders will receive new shares in Coles proportional to their existing shareholding. Wesfarmers would retain a minority ownership interest up to 20 per cent in Coles and a substantial ownership in flybys.This is an important milestone for the future of Wesfarmers and Coles. Wesfarmers, which acquired the Coles Group in 2007, said the decision came after a review of its portfolio and the use of its capital. The conglomerate's remaining businesses will include Bunnings, Kmart, Officeworks, and its industrials portfolio. Shares in Wesfarmers Limited (ASX:WES) gained 0.8 per cent yesterday to $41.20.
One Australian Dollar at 8:40AM was buying 78 US cents, 55.97 Pence Sterling, 82.92 Yen and 63.40 Euro cents.
Gold has lost $8 to $US1316 an ounce.
Silver has fallen $0.14 to $US16.39 an ounce.
Oil has gained $0.27 to $US61.24 a barrel.
The three most traded cryptocurrencies are trading weaker: Bitcoin has fallen 0.3 per cent to US$8,250, Ethereum fallen almost 1 per cent to US$606 and Ripple has fallen 0.8 per cent to US$0.69