Boris Johnson promises Brexit deadline will be met: Aus shares to open lower

Market Reports

by Katrina Bullock

The Australian share market looks set to fall at the open following mixed leads from US markets. Britain's Prime Minister, Boris Johnson, has deliver his first address as PM following his major Cabinet shakeup. He used the opportunity to reiterate his promise to deliver Brexit by the 31 October deadline. Meanwhile, the European Central Bank President, Mario Draghi, has signalled a likely rate cut at the Bank's September meeting as growth forecasts decline. Back home, residential mortgage lender, Resimac Group (ASX:RMC) has updated its guidance ahead of its 2019 financial year results.

Local economic news

We are expecting the ABS to release the Australian Environmental-Economic Accounts.

Markets

Wall Street closed lower yesterday: The Dow Jones Industrial Average lost 0.5 per cent to 27,141; the S&P 500 fell 0.5 per cent to close at 3004 and the NASDAQ dropped 1 per cent to 8239.

European markets closed lower: London’s FTSE lost 0.2 per cent, Paris dipped 0.5 per cent and Frankfurt was down 1.3 per cent.

Asian markets closed higher: Tokyo’s Nikkei gained 0.2 per cent, Hong Kong’s Hang Seng was up 0.3 per cent and China’s Shanghai Composite rose 0.5 per cent.

Taking all of this into equation, the SPI futures are pointing to a 0.5 per cent fall.

Yesterday the Australian share market made ground with the S&P/ASX 200 Index closing 41 points or 0.6 per cent higher at 6,818.

Company news  

Residential mortgage lender, Resimac Group (ASX:RMC), has updated its guidance ahead of its 2019 financial year results which are expected in late August. It expects its normalised net profit after tax guidance to be in the range of $30m to $32 million and its statutory net profit after tax to be between $43 and $46 million. Its projected taxable gain on the disposal of its salary packaging service provider, Paywise, remain in line with its May estimate of $7.5 to $8.5 million. Shares in Resimac Group (ASX:RMC) closed 3.1 per cent higher at $0.67 yesterday.


Viva Energy (ASX:VEA) has appointed its deputy company secretary Julia Kagan as an additional company secretary. She will serve alongside Lachlan Pfeiffer who will continue in his role as fellow company secretary. The appointment is effective from today. Shares in Viva Energy Group (ASX:VEA) closed 2.1 per cent lower at $2.38 yesterday.

Currencies

One Australian Dollar at 7:40AM was buying 69.55 US cents, 55.86 Pence Sterling, 75.54 Yen and 62.40 Euro cents.

Commodities

Iron Ore futures suggest a 1.3 per cent gain.
Gold has dropped by$9.40 to US$1,427 an ounce.
Silver has fallen $0.19 to US$16.43 an ounce.
Oil has added .03 cents to US$55.91a barrel.