The Australia share market closed off the week lower, but it notched its second day of straight gains today rising 0.3 per cent. It comes as China’s stock market has gained 2.8 per cent, despite the US’s new $200 billion in tariffs on Chinese goods kicking in tonight at 9.00pm.
Meantime, The Reserve Bank of Australia cut its growth and inflation forecasts in its May Statement of Monetary Policy. GDP growth is now forecast to be around 2.75 per cent over both 2019 and 2020. This is lower than previously forecasts.
It comes as underlying inflation has been lower than expected, at 1.5 per cent over the year to the March quarter. Trimmed mean inflation is expected to be around 1.75 per cent over 2019 and then increase gradually to 2 per cent in 2020 and a touch above 2 per cent by early 2021. In the near term, CPI inflation is expected to run a little above the rate for trimmed mean inflation, driven by the recent increase in petrol prices, according to the RBA.
At the closing bell the S&P/ASX 200 index closed 16 points higher to finish at 6,311 points. Over the week, the market has lost 25 points or 0.39 per cent.
Futures marketDow futures are suggesting a fall of 38 points.
S&P 500 futures are eyeing a dip of 1.25 points.
The Nasdaq futures are eyeing a fall of 3 points.
And the ASX200 futures are eyeing a 11 point rise
Company news MGM Wireless
(ASX:MWR) has advised its received its first sales in the United Kingdom, ahead of the official SPACETALK launch. SPACETALK is its children’s smartwatch which is already for sale in JB Hi-Fi
(ASX:JBH) in Australia and Spark New Zealand
(ASX:SPK) in New Zealand. MWR the stock was up 7 per cent earlier, it closed 2.67 per cent higher at $4.23.
REA Group
(ASX:REA) has seen revenue rise 7 per cent to $198.6 million in its third quarter results, proving its strength of its market positioning in the cooling housing market. EBITDA rose 6 per cent to $110.7 million and free cash flow rose 27 per cent to $82.9 million.
Ingenia Communities Group
(ASX:INA) and its JV with Sun Communities have inked a deal to buy two greenfield sites, one in Burpengary in Queensland and Fullerton Cove in NSW. The sites have the potential to deliver about 350 new homes. The acquisitions are for $17.75 million and $5.5 million respectively.
News Corp
(ASX:NWS) says the success of its digital strategy and consolidation of Foxtel helped it grow third quarter revenue by 17 per cent to $2.46 billion.
IPOsLife360 Inc.
(ASX:360) started trading today. The company provides an app that provides a driver-protect service that contacts emergency services. It floated with an issue price of $4.79, opened at $5.31, and closed at $5.31. It was underwritten by Credit Suisse & Bell Potter.
Best and worst performers of the dayThe best performing sector was Utilities adding 2.13 per cent while the worst performing sector was Materials, remaining steady.
The best performing stock in the S&P/ASX 200 was TPG Telecom
(ASX:TPM), rising 4.96 per cent to close at $6.35. Shares in Spark Infrastructure Group
(ASX:SKI) and Saracen Mineral Holdings
(ASX:SAR) followed higher.
The worst performing stock in the S&P/ASX 200 was Nufarm
(ASX:NUF), dropping 4.74 per cent to close at $4.62. Shares in Eclipx Group
(ASX:ECX) and Adelaide Brighton
(ASX:ABC) followed lower.
Asian marketsJapan’s Nikkei has lost 0.3 per cent, Hong Kong’s Hang Seng has added 1.16 per cent and the Shanghai Composite has gained 2.01 per cent.
Wall Street Wrapped up our four trading days this week lower: The Dow Jones lost 2.6 per cent, The S&P 500 lost 2.6 per cent and the tech heavy Nasdaq lost 2.7 per cent.
Commodities and the dollar Gold is trading at US$1,285 an ounce.
Iron ore price fell 0.2 per cent to US$95.38.
Iron ore futures are pointing to a rise of2.3 per cent.
Light crude is US$0.52 down at US$61.60 a barrel.
One Australian dollar is buying 69.96 US cents.
