Chinese travel to the US drops: ASX set to open lower

Australian shares are poised to open lower as stocks in the US dipped as the deal with China rumbles on. Meanwhile, travel from China to the US fell almost 6 per cent last year. It's the first time since 2003 that Chinese travel to the US slipped from the prior year. US shares fell to the lowest since March as a rally in 10-year Treasuries set concerns for recession signals due to the China trade unresolve.

Markets 

Wall Street closed lower yesterday: The Dow Jones Industrial Average lost 0.9 per cent to 25,348, the S&P 500 fell 0.8 per cent to close at 2802 and the NASDAQ dipped 0.4 per cent to 7607.

European markets closed weaker: London’s FTSE fell 0.12 per cent, Paris dropped 0.4 per cent and Frankfurt shed 0.4 per cent.

Asian markets closed higher, Tokyo’s Nikkei added 0.4 per cent, Hong Kong’s Hang Seng gained 0.4 per cent and China’s Shanghai Composite rose 0.6 per cent.

Taking all of this into equation, the SPI futures are down 43 points. Yesterday, the Australian share market closed 33 points (0.5 per cent) higher at 6485.

Company news

Downer EDI (ASX:DOW) has initiated talks with bankrupt partner Senvion to establish a process for completing the first stage of a wind farm in Victoria. In December 2017, Downer EDI and its partner Senvion a leading global manufacturer of wind turbines based in Germany, entered into a contract for Stage One of the Murra Warra Wind Farm near Horsham in Western Victoria. This involves electrical, procurement and construction work, including the installation of 61 wind turbines. Under the contract, Senvion is responsible for the manufacture, transport, erection and commissioning of the turbines while Downer is responsible for balance of plant works. Stage One is valued at approximately $380 million, with Downer’s share approximately $100 million. While the delivery scope is split between Downer and Senvion they share any liability. Downer holds a substantial bank guarantee from Senvion. On 9 April 2019 Senvion filed self-administration proceedings in Germany. On 17 April 2019 Senvion announced that its lenders and main bond holders had signed a binding loan agreement for a EUR100 million debtor-in-possession facility. As these discussions continue, Downer is assessing whether there is any potential financial impact on Downer and its guidance for the 2019 financial year. Shares is Downer EDI (ASX:DOW) closed 0.13 per cent higher at $7.88 yesterday.

Ex-Dividends

Aristocrat Leisure (ASX:ALL) is paying 22 cents fully franked.

Currencies

One Australian Dollar at 7:40AM was buying 69.26US cents, 54.74Pence Sterling, 75.75 Yen and 62.05 Euro cents.

Commodities

Iron Ore futures suggest a 2.3 per cent fall.
Gold has fallen $5.10 to US$1284 an ounce.
Silver was down $0.23 to US$14.32 an ounce.
Oil rose $0.43 to US$59.06 a barrel.