Wall St financial sector weakens: Aus shares to open lower

Market Reports

by Roma Christian

The Australian share market is poised to open lower today, on the back of falls on Wall Street mostly from the financial sector.

The S&P 500 fell 0.05 per cent, with financials dragging down the index falling 0.8 per cent.

The Dow Jones fell about 20 points, with Goldman Sachs offering the most losses.

Whilst the tech-heavy Nasdaq fell 0.08 percent, it did post an overall monthly gain, hitting a seven month winning streak, the longest since 2013.

US economic news:

The National Association of Realtors has released its Pending Homes Sales data. The leading housing market index, saw pending home sales fall 1.3 per cent in April compared with March. It comes on the back of a larger than expected fall in closed home sales for April. The reading is 3.3 per cent lower than April last year.

The US Federal Reserve released its Beige Book for the period between early April and late May. It is the Fed’s periodic gauge of the US economy’s health, based on surveys with business firms across twelve national districts.

The report said the US economy expanded at a modest to moderate pace, with a sluggish inflation trend remaining. Officials say that an interest rate rise is likely soon. The majority of district firms surveyed expressed a positive near-term outlook.

Local economic news:

The ABS will release its business investment data for the March quarter. In the December quarter, business investment fell by 2.7 per cent. The RBA will be especially interested in estimates of non-mining investment.

Also out today will be retail trade data for April. Commsec expects that April retail sales will have rebounded by 0.4 per cent in seasonally adjusted terms.

Later on, Core Logic will release its estimates of home prices for May. The data will show the effects of tighter bank lending restrictions.

Finally, the Australia Industry Group will release its Performance of Manufacturing Index for May. The index shows performance of the manufacturing and construction sector. It is expected it to show manufacturing expansion.


Wall Street closed lower yesterday. The Dow Jones Industrial average lost 0.1 per cent to close at 21,009, the S&P 500 fell 0.1 per cent to close at 2,412 and the NASDAQ is down 0.1 per cent to close at 6,199.

European markets closed mixed: London’s FTSE down 0.1 per cent, Paris lost 0.4 per cent and Frankfurt rose 0.1 per cent.

Asian markets closed mixed: Tokyo’s Nikkei fell 0.1 per cent, Hong Kong’s Hang Seng fell 0.2 per cent and China’s Shanghai Composite rose 0.2 per cent.

And back home, the Australian share market closed higher yesterday: The S&P/ASX 200 Index closed 7 points up to finish at 5,725. On the futures market, the SPI is 8 points down.

Company news:

Image Resources NL (ASX:IMA) has approved BFS’s recommendation to seek financing for its Boonanarring/Atlas project near Perth. The mineral sands producer says funds will fast track the project’s development, and that finalising financing is the next decision. Image Resources says the decision follows positive results from May’s bankable feasibility study. Image Resources NL (ASX:IMA) closed 4.55% higher yesterday to 11.5 cents.


Twelve companies going ex-dividends today:

Amyf One Limited (ASX:AYD) is paying 75 cents un franked.
Amyf Two Limited (ASX:AYH) is paying 70 cents un franked.
Amyf Three Limited (ASX:AYJ) is paying 50 cents 25 per cent franked.
Amyf Four Limited (ASX:AYK) is paying 45 cents fully franked.
Amyf Five Limited (ASX:AYZ) is paying 42 cents un franked.
CSR Limited (ASX:CSR) is paying 13 cents 50 per cent franked.
Infratil Limited (ASX:IFT) is paying 9.32 cents un franked.
Kathmandu Holdings Limited (ASX:KMD) is paying 3.65 cents un franked.
Ruralco Holdings (ASX:RHL) is paying 9 cents fully franked.
Technology One (ASX:TNE) is paying 2.6 cents 75 per cent franked.
US Private Fund (ASX:USF) is paying 30 cents un franked.
US Private Fund II (ASX:USG) is paying 10 cents un franked.


The Australian Dollar at 7.30AM was buying 74.35 US cents, 57.74 Pence Stirling, 82.36 Yen and 66.13 Euro cents.


Gold has gained $5.70 to $US1,271 an ounce. Silver has lost 11 cents to $US17.32 an ounce. And Oil has fell $US1.03 cents to $US48.63 a barrel.