RBA expected to hold rates today: Aus shares to open flat

Market Reports

by Jessica Amir

We saw mixed results from Wall Street again, while the Dow Jones shone, and hit another record close on the back of reporting season. Because of the lack of direction, the ASX futures is tipping a flat start for our local bourse.

Goldman Sachs and Home Depot added the most gains, while Boeing’s share also rose half a per cent after it revealed it’s expecting a record number of aircraft orders from India.

Selling returned to large-cap tech stocks, like Facebook and Alphabet which saw the Nasdaq close lower, while a small amount of selling in Materials and IT saw the S&P 500 close around breakeven.

On the commodity front, Oil has posted its best monthly rise since 2016, rising 9 per cent in July. It’s now settling above $50 mark.

To US economic news

Contracts to buy pre-owned owned US homes, strongly rebounded in June, from three monthly declines, according to the National Association of Realtors.

It comes as US pending home sales rose in 1.5 per cent in June, more than double the expected 0.7 per cent rise.

Local economic news

The RBA will hold their all important Bank Board meeting. We can expect to learn of their interest rates decision at 2.30pm. Rates are widely expected to remain on hold at 1.5 per cent and some analysts are tipping interest rates will remain at that level till 2018.

We will learn of the CoreLogic Home Value Index for July, with some expecting a rise of 1.6 per cent.

Markets

Wall Street closed mixed: The Dow Jones Industrial Average gained 0.3 per cent to close at 21,891, the S&P 500 fell 0.07 per cent to close at 2,470 and the NASDAQ slipped 0.4 per cent to close at 6,348

European markets closed mixed: London’s FTSE rose 0.1 per cent, Paris lost 0.7 per cent and Frankfurt fell 0.4 per cent.

Asian markets closed mixed: Tokyo’s Nikkei lost 0.2 per cent, Hong Kong’s Hang Seng rose 1.3 per cent, and China’s Shanghai Composite gained 0.6 per cent.

And back home, the Australian share market higher on Monday: At the closing bell, The S&P/ASX 200 Index closed 18 points up or 0.3 per cent higher for the day at 5,721.

On the futures market the SPI is 1 point down.

Company news

Downer EDI (ASX:DOW) has again extended its unconditional takeover offer of Spotless Group Holdings (ASX:SPO). In its sixth supplementary bidders statement it will now close its takeover on Monday 7 August 2017 at 7pm. In the past four weeks (since 28 June 2017) the engineering company has increased its stake in Spotless from 59.64% to 83 per cent (as at COB 31 July 2017). Spotless Group is also now recommending shareholders accept Downer’s offer of $1.15 cash per share. Shareholder who do not accept will offer will become minority stakeholders unless Downer is able to proceed with the compulsory acquisition. Shares in Downer EDI (ASX:DOW) last traded 1.27 per cent higher yesterday to $6.36.

Reporting season

Two companies are set to report their results today. Navitas (ASX:NVT) will report its FY17 results, with estimated NPAT to come in at $89.32 million, while Alacer Gold (ASX:AQG) will reveal its first half 2017 results.

BWP Trust (ASX:BWP) and RIO (ASX:RIO) are tomorrow, so make sure you join us then too.

Currencies

One Australian Dollar at 7:30AM was buying 80.03 US cents, 60.59 Pence Sterling, 88.24 Yen and 67.61 Euro cents.

Commodities

Gold is flat at $US1,275 an ounce.
Silver has gained $0.12 to $US16.82 an ounce.
And Oil has added $0.46 to $US50.17 a barrel.
 

Jessica Amir

Finance News Network
Jessica joined FNN in January 2017 after having worked in financial advising for seven years and in TV journalism for seven years, specialising in finance, equities and analysis. She has interviewed former Prime Ministers of Australia, Tony Abbott, Julia Gillard and Kevin Rudd and ex Treasurer Jo Hockey. Jessica has worked as a journalist with Sky News Business, ABC 1, ABC's The Business, ABC24 and has also been a regional Channel 7 and 9 TV reporter with Prime7 and Win News.