Outlook: Aus shares set to open lower

Market Reports

by David Chau

The Australian share market looks like it will open lower today, following negative leads from the US.

Wall Street performed strongly for most of yesterday. But, near the end, the major indexes fell for the fifth day straight as investors continued to worry about whether Britain will leave the European Union at next Thursday’s referendum.

US economic news

The Federal Reserve has decided not to raise interest rates – no surprises there. The Fed also lowered its economic growth forecast and indicated there may Tbe two interest rate hikes later this year.


Wall Street closed lower yesterday: The Dow Jones Industrial Average lost 0.2 per cent to close at 17,640, the S&P 500 lost 0.2 per cent to close at 2,072 and the NASDAQ lost 0.2 per cent to close at 4,835.

European markets closed higher: London’s FTSE gained 0.7 per cent, Paris gained 1 per cent and Frankfurt gained 0.9 per cent.

Asian markets closed higher: Tokyo’s Nikkei gained 0.4 per cent, Hong Kong’s Hang Seng gained 0.4 per cent, and China’s Shanghai Composite gained 1.6 per cent.

The Australian share market closed lower yesterday: The S&P/ASX 200 Index closed 56 points down to finish at 5,147. On the futures market the SPI is up 1 point.


The Australian Dollar at 7:30AM was buying $US0.7410, 52.16 Pence Sterling, 78.55 Yen and 65.80 Euro cents.

Australian economic news

Later today, the Australian Bureau of Statistics will release the May 2016 figures for unemployment and new motor vehicle sales.

Company news

Both the South Australian and Western Australian governments have granted funding for Centrex Metals Ltd (ASX:CXM) to expand its research on molten salt mineral processing around the Oxley Potassium Project. $390,000 worth of research funding has been conditionally committed to the first two stages of this Project.

Shares in Centrex closed steady at 6.6 cents.

The South Australian government has also granted funding to the Beston Global Food Company Ltd (ASX:BFC) to develop a ‘state of the art cheese processing facility at Murray Bridge. The government grant is for $2.5 million and is conditional on the company getting local council and other regulatory approvals.

Shares in Beston closed 2.41% higher yesterday at 42.5 cents.


Gold has gained $6.40 to $US1,295 an ounce for the August contract on Comex.
Silver is up $0.12 to $17.54 for July.
Copper is up $0.05 to $2.09 cents a pound for July.
Oil is down $0.52 to $US47.98 a barrel for July light crude in New York.

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