ASX to slip on open; Glenn Stevens holds last RBA meeting

Market Reports

by David Chau

This morning, local shares are set to open lower when the ASX opens for business.

At the G20 summit, Russia and Saudi Arabia signed an oil-cooperation agreement – with the aim to limit output and stabilise the market. This led to oil prices surging by almost 5%. However, those nearly all those gains were lost when both oil producers clarified that any freeze in production will not happen right away.

Economic news

The Reserve Bank will meet again today, and it will be Glenn Stevens’ last meeting as governor before he steps down. Last month, the RBA cut the official cash rate to a record low 1.5%.  It is expected that the cash rate will remain the same following today’s meeting.

Later today, the Australian Bureau of Statistics will release balance of payments data for the June quarter. That is, the difference in value between Australia's imported and exported goods and services. Previously, in the March quarter, the current account deficit fell 8% to $20.8 billion.

Markets

Yesterday, it was the Labor Day public holiday in the US, so Wall Street was closed.

European markets finished lower: London’s FTSE was down 0.2%, Paris was flat and Frankfurt was down 0.1%.

On the other hand, Asian markets closed higher: the Nikkei gained 0.7 per cent, the Hang Seng was up 1.7 per cent, and the Shanghai Composite was up 0.2 percent.

The Australian share market closed higher yesterday: The S&P/ASX 200 Index closed 57 points up to finish at 5,430. This morning, on the futures market, the SPI is down 20 points.

Currencies

The Australian Dollar at 7:20AM was buying $US0.7587, 57.02 Pence, 78.48 Yen and 68.06 Euro cents.

Company news

Noni B (ASX:NBL) has completed the acquisition of all the share capital in the Pretty Girl Fashion Group. Noni B says that over 7.7 million paid ordinary shares in the company were issued to Ridgegate (at $1.25 per share). This was part of the consideration for Ridgegate’s transfer of its shares in Pretty Girl Fashion to Noni B. Shares in Noni B closed 13.87 cent higher at $1.56.

Perseus Mining (ASX:PRU) says it has achieved two further milestones in implementing its corporate growth strategy. One of them is that the company received credit approval, in the order of $US60 million, for a project debt facility in relation to the Sissingue Gold Project. The company has also appointed a new chief operating officer, Chris Woodall. Shares in Perseus Mining closed 2 per cent higher at 51 cents.

Commodities

Gold has gained $4 to $US1,331 an ounce for the December contract on Comex.
Silver has gained $0.25 to $19.61 for December.
Copper is steady at $2.08 a pound for December.
Oil has risen $0.73 to $US45.17 a barrel for October light crude.

Ex-dividends