Trump tax reform back: Aus shares to open higher

Market Reports

by Jessica Ellerm


Following positive leads from US markets, the Australian share market looks set to open higher, with futures up 6 points. Federal Reserve Chair Janet Yellen’s address in Jackson Hole on Thursday evening gave investors little guidance on when the central bank would lift rates. However news Trump will hit the campaign trail this week for his long awaited tax reform package will no doubt be watched closely by traders as the week unfolds.

US economic news

Orders for manufactured durable goods fell by 6.8 per cent in July compared to June. The market was expecting a 6 per cent drop. However durable goods orders excluding transport lifted slightly, increasing 0.5 per cent on June

Local economic news

On Wednesday, Building Permit data for July will be released. Thursday will see both New Homes Sales and Private Sector Credit data published, an.d on Friday AIG will release the August Manufacturing Index

Markets

Wall Street closed mixed on Friday: The Dow Jones Industrial Average gained 0.1 per cent to close at 21,814, the S&P 500 added 0.2 per cent to close at 2,443 and the NASDAQ lost 0.1 per cent to close at 6,266.

European markets closed lower: London’s FTSE fell 0.1 per cent, Paris lost 0.2 per cent and Frankfurt dropped 0.1 per cent.

Asian markets closed up: Tokyo’s Nikkei added 0.5 per cent, Hong Kong’s Hang Seng gained 1.2 per cent, and China’s Shanghai Composite jumped 1.8 per cent.

And back home, the Australian share market closed lower on Friday: The S&P/ASX 200 Index closed 2 points down to finish at 5,744. The ASX was down 3 points on the week. On the futures market the SPI is 6 points up.

Company news

Asia Pacific Data Centre (ASX:AJD) has announced its directors have unanimously recommended shareholders accept an off-market and unconditional takeover offer from listed data centre company NEXTDC (ASX:NXT). The offer price of $1.87 per share represents a 13.3 per cent premium to Asia Pacific’s net tangible assets as at 30 June. It also represents a premium of 1.6 per cent on the closing price of shares on July 28, the day before the offer was announced. Shares in Asia Pacific Data Centre (ASX:AJD) last traded 0.27% lower at $1.88.

Reporting season

8 companies are expected to report today. You can watch out for Auswide Bank (ASX:ABA), amaySIM Australia (ASX:AYS) and Lendlease Group (ASX:LLC).

Ex-dividends

4 companies are going ex-dividend today: Aurizon Holdings (ASX:AUZ) will pay 8.9 cents 50 percent franked, Coca-Cola Amatil (ASX:CCL) will pay 21 cents 70 per cent franked, The Star Entertainment Group (ASX:SGR) will pay 8.5 cents fully franked and Summerset Group Holdings (ASX:SNZ) will pay 3.07 cents unfranked.

Currencies

The Australian Dollar at 7:45AM was buying $US79.35 cents, 61.47 Pence Sterling, 86.66 Yen and 66.44 Euro cents.

Commodities

Gold has gained $5.90 to $US1,298 an ounce.
Silver has gained $0.09 to $US17.13 an ounce
Oil has gained $0.44 to $US47.87 a barrel.