Weak export data weighs on global markets: ASX set for modest open

Market Reports

by Jessica Ellerm


Despite negative leads, the Australian share market looks set for a modest open, with futures currently up. Wall St fell on Thursday, with financials leading the declines ahead of earnings reports due out Friday. News that Chinese exports had fallen 10 percent year on year in September also spooked markets, adding further evidence of a growing weakness in global trade.

US economic news

US import prices rose 0.1 percent in September, slightly softer than market expectations of a 0.2 percent gain for the month. Jobless claims continued to hold steady last week, coming in at 246,000 and at a 43 year low, points to a healthy labour market.



Markets

Wall Street closed lower yesterday: The Dow Jones Industrial Average lost 0.3 per cent to close at 18,099, the S&P 500 fell 0.3 per cent to close at 2,133 and the NASDAQ shed 0.5 per cent to close at 5,213.

European markets closed lower: London’s FTSE fell 0.7 per cent, Paris dropped 1.1 per cent and Frankfurt slipped just over 1 per cent.

Asian markets closed mixed: Tokyo’s Nikkei dropped 0.4 per cent, Hong Kong’s Hang Seng lost 1.6 per cent, and China’s Shanghai Composite gained 0.1 per cent.

The Australian share market closed lower yesterday: The S&P/ASX 200 Index closed 39 points down to finish at 5,436. On the futures market the SPI is 11 points up.

Currencies

The Australian Dollar at 7:20AM was buying $US75.69 cents, 61.82 Pence Sterling, 78.46 Yen and 68.48 Euro cents.

Economic news

Due out today from the Reserve Bank of Australia is its Financial Stability Review.

Company news

APA Group (ASX:APA) has announced it will seek to issue $200 million in 7-year-fixed-rate Medium Term Notes to local and international bond investors. The notes are priced at 180 basis points above the benchmark. The proceeds will be used to refinance existing facilities and reduced long term debt costs. Shares in APA Group closed 0.12 per cent lower yesterday at $8.08.

CIMIC Group (ASX:CIM) has announced Leighton India Contractors, a Leighton Asia subsidiary, has entered into an alliance agreement to deliver the Ten BKC project in Mumbai, India. Revenue expected as a result of the deal is around $140 million. The project consists of a two hectare residential development comprising of 937 apartments across 40 towers, with work already commenced and slated for completion in June 2019. Shares in CIMIC Group closed 1.18 per cent lower yesterday at $27.61.

Commodities

Gold has gained $5.30 to $US1,259 an ounce for the December contract on Comex.
Silver has risen $0.02 to $17.52 for December.
Copper has fallen $0.05 to $2.12 a pound for December.
Oil has gained $0.44 to $US50.83 a barrel for November light crude in New York.