US Fed votes to raise rates: Aus shares to open higher

Market Reports

by Roma Christian

The Australian share market is tipped to open higher, after Wall Street closed mostly in the black following the 4 July holiday.

The Nasdaq rose 0.7 per cent with large cap tech stocks as Facebook, Apple and Alphabet all closing higher. The S&P 200 also rose 0.2 per cent with IT stocks leading advancers.

The Dow Jones closed somewhat flat, with IBM offering the most losses, and Boeing offering the most gains.

Meantime, minutes from the latest Fed meeting were released, with officials choosing to continue rates rises despite muted inflation levels. Fed officials also believe the central bank’s balance sheet can be reduced, but gave no indication as to when the unwind might start.

Economic news

China’s services sector activity grew at a slower pace in June. The Caixin China Services PMI fell to 51.6, down from May’s four month high of 52.8. Whilst the indicator signalled expansion, it was also the second weakest level in the past 13 months.

Local economic news

The Australian Bureau of Statistics will release its international trade data (or import and exports data) for the month of May. Analysts say interpreting the results will be complicated by the impact of Cyclone Debbie, in its disruption of coal and agricultural exports.

Markets

Wall Street closed somewhat higher yesterday: The Dow Jones Industrial average lost 0.01 per cent to close at 21,478, the S&P 500 added 0.2 per cent to close at 2,433 and the NASDAQ gained 0.7 per cent to close at 6,151.

European markets closed higher: London’s FTSE rose 0.1 per cent, Paris rose 0.1 per cent and Frankfurt climed 0.1 per cent.

Asian markets closed higher: Tokyo’s Nikkei added 0.3 per cent, Hong Kong’s Hang Seng rose 0.5 per cent and China’s Shanghai Composite climbed 0.8 per cent.

And back home, the Australian share market closed lower yesterday: The S&P/ASX 200 Index closed 21 points down to finish at 5,763. On the futures market, the SPI is 21 points up.

Company news

Global Construction Services Limited (ASX:GCS) has announced its acquired division Gallery Facades, has executed a $40 million contract with Multiplex Constructions. The construction services group says the contract will be for the supply and installation of a facetted facade to Melbourne’s Swanston Central tower. The company says Gallery will carry out the works over an estimated 18 month period. Shares in Global Construction Services Limited (ASX:GCS) closed flat at 59 cents.

Ex-dividends

Seven companies are going ex-dividend today:
Abacus Property Group (ASX:ABP) is paying 8.75 cents un franked.
Clime Capital (ASX:CAM) is paying 1.25 cents fully franked.
Metro Perf. Glass Limited (ASX:MPP) is paying 3.76 cents un franked.
Metcash Limited (ASX:MTS) is paying 4.5 cents fully franked.
Programmed Limited (ASX:PRG) is paying 3.5 cents fully franked.
Rand Mining Limited (ASX:RND) is paying 10 cents fully franked.
Tribune Res Limited (ASX:TBR) is paying 20 cents fully franked.

Currencies

The Australian Dollar at 7.30AM was buying 76.07 US cents, 58.83 Pence Stirling, 86.12 Yen and 67.04 Euro cents.

Commodities

Gold has gained $2.70 to $US1,227 an ounce.
Silver is flat at $US16.06 an ounce.
Oil has dropped $1.50 to $US45.61 a barrel.