Australian shares look set to open higher this morning with the major banks expected to rise after the final report of the Royal Commission was softer than expected. The report, which was handed down after market close yesterday made no calls for forcibly separating banks from financial advice divisions. Analysts from UBS say they don't believe that any of the 76 recommendations by themselves will have a material financial impact on the banks. However, the report has been highly critical of the culture of the big banks. NAB was singled out by Commissioner Kenneth Hayne who says he is not convinced CEO Andrew Thorburn and Chairman Ken Henry have learnt from the lessons of the past.
In the US, stocks rose on Monday led by tech shares as investors awaited key corporate earnings from Google parent company Alphabet. Shares of Facebook, Apple, Netflix and Alphabet all closed at least 2 percent higher.
Economic NewsToday the Reserve Bank Board meets for the first time this year, but no change in the official cash rate is expected. The International Trade in Goods and Services report will be out for December as well as retail trade for December.
MarketsWall Street closed higher yesterday: The Dow Jones Industrial Average added 0.7 per cent to close at 25,239, the S&P 500 gained 0.7 per cent to close at 2,725 and the NASDAQ rose 1.2 per cent to close at 7348.
European markets closed mixed: London’s FTSE added 0.2 per cent, Paris fell 0.4 per cent and Frankfurt lost 0.04 per cent.
Asian markets closed higher: Tokyo’s Nikkei added 0.5 per cent, Hong Kong’s Hang Seng gained 0.2 per cent while and China’s Shanghai Composite was closed.
Returning home, the ASX futures are up 39 points. Yesterday the Australian share market closed 0.5 per cent higher or 28 points lower 5891.
All eyes will be on Navitas
(ASX:NVT) today with it due to release financial results.
Company newsANZ CEO
(ASX:ANZ) Shayne Elliott has commented on the final report of the Royal Commission saying it will change the industry for the better. Elliott says ANZ is committed to continuing work and investment required to build a bank worth of the trusts and respect of its customers and the community, ensuring these failures aren't repeated. Shares in ANZ
(ASX:ANZ) closed 1.16 per cent higher at $25.22 yesterday.
CurrenciesOne Australian Dollar at 8:50 AM was buying 72.26US cents, 55.43 Pence Sterling, 79.41 Yen and 63.20 Euro cents.
Commodities Gold has fallen$5.70 to US$1316 an ounce.
Silver has dropped $0.06 to US$15.87 an ounce.
Oil has lost $0.53 to US$54.73 a barrel.
