European Central Bank slashes growth forecasts: ASX poised to open lower

Market Reports

by Rachael Jones

The Australian share market is set to open lower this morning following on from losses in Europe. The euro zone’s central bank cut its growth forecast for 2019 to 1.1 percent from December's forecast of 1.7 per cent. The ECB reinforced concerns global growth is slowing. The euro fell to the lowest since 2017. Over in the US – a drop in tech shares sent US stocks to their longest losing streak this year.

Company news

Lithium company Lepidico (ASX:LPD) has reported their Portugal assays indicate larger lithium Resource at Alvarrões. This new Mineral Resource estimate will form the basis for an inaugural Ore Reserve estimate scheduled for the June 2019 quarter to support the integrated Phase 1 Plant Feasibility Study. Shares in Lepidico (ASX:LPD) closed flat at 2.6 cents yesterday.

Alliance Mineral Assets (ASX:A40) has appointed Ron Chamberlain as Chief Financial Officer. He replaces Shaun Menezes who resigned following completion of the merger with Tawana Resources NL and Craig Hasson, Tawana’s CFO who has been fulfilling the interim CFO duties for Alliance, he's elected to focus on a commercial role within the merged group. Ron has held senior roles with ASX 100 and ASX 200 mineral producers including Iluka Resources Limited and Paladin Energy Limited. Alliance Mineral Assets (ASX:A40) closed down 5.26 per cent at $0.18.


Wall Street closed weaker yesterday: The Dow Jones Industrial Average fell 0.8 per cent to close at 25,473, the S&P 500 shed 0.8 per cent to close at 2,749 and the NASDAQ was down 1.1 per cent to close at 7421.

European markets closed lower: London’s FTSE lost 0.5 per cent, Paris dipped 0.4 per cent and Frankfurt dropped 0.6 per cent.

Asian markets closedmixed, Tokyo’s Nikkei dropped 0.7 per cent lower,Hong Kong’s Hang Seng shed 0.9 per cent and China’s Shanghai Composite added 0.1 per cent.

Taking all of this into equation, the ASX futures are down 35 points. Yesterday the Australian share market closed 0.3 per cent higher or 18 points at 6264.


Ryder Capital Ltd (ASX:RYD) is paying 1 cents fully franked
Sonic Healthcare Limited (ASX:SHL) is paying 33 cents 20 per cent franked
Tamawood Limited (ASX:TWD) is paying 33 cents fully franked
Vista Group International Ltd (ASX:VGL) is paying 1.71 cents unfranked
Wisetech Global Ltd (ASX:WTC) is paying 1.5 cents fully franked
Yancoal Australia Ltd (ASX:YAL) is paying 28.55 cents unfranked


One Australian Dollar at 8:40 AM was buying 70.19 US cents, 53.66 Pence Sterling, 78.35 Yen and 62.71 Euro cents.


It futures suggest a 0.2 per cent fall.
Gold has dropped $1.50 to US$1286 an ounce.
Silver has lost $0.05 to US$15.04 an ounce.
Oil has added $0.32 to US$56.54 a barrel.