Netflix shares down on US subscriber loss: ASX set to open lower

Market Reports

by Rachael Jones

Following weak leads from US markets, the Australian share market looks set to open lower. US stocks fell again as investors are still cautious over the US China trade spat. In after-hours trading, shares in Netflix Inc. fell after a surprise slump in US customers for the second quarter. On the commodities front, iron ore eased as the Chinese market authorities promised to bring some order to the futures market. Oil has fallen and gold has gained.

Local economic news 

Investors will be waiting cautiously to get the Labour Force figures for June 2019 from the Australian Bureau of Statistics.

Markets

Wall Street closed lower yesterday: The Dow Jones Industrial Average lost 0.4 per cent to close at 27,220, the S&P 500 lost 0.7 per cent to close at 2,984 and the NASDAQ lost 0.5 per cent to close at 8,185.

European markets closed higher: London’s FTSE added 2.4 per cent, Paris added 3.4 per cent and Frankfurt gained 2.1 per cent.

Asian markets closed lower: Tokyo’s Nikkei lost 0.3 per cent, Hong Kong’s Hang Seng lost 0.1 per cent, and China’s Shanghai Composite lost 0.2 per cent.

Taking all of this into equation, the ASX futures are pointing to a 15 points fall. Yesterday the Australian share market closed higher with the S&P/ASX 200 Index closing 0.5 per cent higher at 6,673.

Company news 

The Civil Aviation Safety Authority (CASA) delivered its formal report following an audit in response to a complaint by a disgruntled engineer and his union that Rex (ASX:REX) airlines had a bad safety culture. The audit report did not issue a single safety finding and did not even find any minor lapses that would warrant a safety observation. The audit also examined the video provided by an anonymous source to the media that allegedly showed “rust” on a propeller shaft of a Rex aircraft. The report accepted the evidence that the surface discolouration visible in the video was dirt and very minor surface corrosion. Shares in Rex (ASX:REX) closed 0.7 per cent higher yesterday at $1.46.

Currencies

One Australian Dollar at 7:45AM was buying 70.12 US cents, 56.41 Pence Sterling, 75.67 Yen and 62.47 Euro cents.

Commodities

Iron Ore futures suggest a 0.5 per cent rise.
Gold has gained $17.00 to US$1,428 an ounce.
Silver has gained $0.33 to US$16.00 an ounce.
Oil has fallen by $1.03 to US$56.71 a barrel.
 

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