Following positive leads from US markets, the Australian share market looks set to open higher. On Wall Street small cap stocks hit a record, after the government released its tax reform framework. The broader S&P 500 also hit a record, while the Dow Jones added about 40 points.
On the commodity front, the iron ore price has dipped almost 1 per cent, while the oil price has slipped from its five-month high.
US economic news
The US economy grew at a 3.1 per cent annual pace in the second quarter of 2017, beating forecast of 3 per cent growth. The economy has somewhat remained steady, with stable job growth and a booming stock market encouraging households to spend. However, economists are predicting a slowdown in the third quarter from July to September with 2.2 per cent growth.
Local economic news
We can expect to get a reading of outstanding loans or Private sector credit from RBA. Consensus is tipping a rise in the year on year loans.
Wall Street closed most higher yesterday: The Dow Jones Industrial Average gained 0.2 per cent to close at 22,381, the S&P 500 added 0.1 per cent to close at 2,510 and the NASDAQ closed flat 6,453.
European markets closed higher: London’s FTSE rose 0.1 per cent, Paris added 0.2 per cent and Frankfurt added 0.4 per cent.
Asian closed mixed: Tokyo’s Nikkei added 0.5 per cent, Hong Kong’s Hang Seng lost 0.8 per cent, and China’s Shanghai Composite fell 0.2 per cent.
And back home, the Australian share market closed higher yesterday: The S&P/ASX 200 Index closed 6 points up to finish at 5,670.
On the futures market the SPI is 14 points up.
ANZ (ASX:ANZ) has raised about $931 million of Additional Tier 1 Capital. The big 4 bank issued about 9.31 million ANZ Capital Notes 5 at $100 each. ANZ also announced its Convertible Preference Shares (CPS3) buy-back settled with all the units being sold for $100 each. ANZ purchased $767 million of the participating shares, and later cancelled, with $573 million remaining on issue. Shares in ANZ (ASX:ANZ) are last traded 0.2 per cent lower at $29.75.
3 companies are going ex-dividend today:
CI Resources (ASX:CII) is paying 7 cents fully franked
Imperial Pacific (ASX:IPC) is paying 6.25 cents fully franked
London City Equities (ASX:LCE) is paying 1.38 cents fully franked
One Australian Dollar at 7:45AM was buying 78.55 US cents, 58.46 Pence Sterling, 88.21 Yen and 66.67 Euro cents.
Gold has gained $2.10 to $US1,290 an ounce.
Silver has gained $0.07 to $US16.90 an ounce.
Oil has lost $0.55 to $US51.59 a barrel.