Following negative leads from US markets, the Australian share market looks set to open lower. The market took a hit, with the Dow dropping 85 points and the S&P 500 also finishing lower. This came immediately after the White House reported corporate tax cuts could be gradual and would remain at 20 per cent by the year 2022.
The US dollar dipped even though it posted its best week so far this year, following news that former Trump campaign manager faces charges against the US.
Safe haven gold has steadied, ahead of Trump announcing the new Federal Reserve chair this week. Oil is slightly higher, and iron ore is down.
US economic news
Personal income in the US rose 0.4 per cent month on month in September, in line with market expectations, driven by increase in wages and proprietor income.
Personal spending jumped 1 per cent month on month in September, beating market expectations of 0.8 per cent. This is the biggest gain in personal consumption since August 2009, boosted by car sales and utilities as households recover from hurricanes.
The price index for personal expenditures went up 0.4 per cent month on month, the highest gain since January. Excluding food and energy, the price index went up only 0.1 per cent. Cost of goods went up 0.7 per cent and cost of services went up 0.2 per cent
Local economic news
The HIA will release new homes sales, which is forecast to increase marginally. Last month saw a 9.1% increase after a drop the previous month.
The Reserve Bank will release private sector credit data for September, which is forecast to increase less than half a per cent, similar to last month.
Wall Street closed lower yesterday: The Dow Jones Industrial Average lost 0.4 per cent to close at 23,349, the S&P 500 lost 0.3 per cent to close at 2,573 and the NASDAQ lost 0.03 per cent to close at 6,699.
European markets closed mixed: London’s FTSE down 0.2 per cent, Paris lost 0.01 per cent and Frankfurt gained 0.1 per cent.
Asian markets closed mixed: Tokyo’s Nikkei added 0.01 per cent, Hong Kong’s Hang Seng dropped 0.4 per cent, and China’s Shanghai Composite is down 0.8 per cent.
And back home, the Australian share market closed higher yesterday: The S&P/ASX 200 Index closed 16 points up to finish at 5,919.
On the futures market the SPI flat.
De Grey Mining (ASX:DEG) has discovered two new prospects where gold nugget conglomerate discoveries have been made, which has the potential to expand the Pilbara Gold Project. The gold nuggets were discovered at Jarret Well and Steel Well, within a 12 kilometre target area from Loudens Patch. According to geophysical and aerial photography, the patch covers over 2.5 kilometres of continuous strike length. Shares in De Grey Mining (ASX:DEG) closed flat at 21 cents.
2 companies are going ex-dividend today:
CTI Logistics (ASX:CLX) is paying 1.75 cents and Harvey Norman (ASX:HVN) is paying 12 cents, both fully franked.
One Australian Dollar at 7:40AM was buying 76.90 US cents, 58.24 Pence Sterling, 87.04 Yen and 65.99 Euro cents.
Gold has gained $5.50 to $US1,277 an ounce.
Silver has gained 10 cents to $US16.85 an ounce.
Oil has gained 22 cents to $US54.12 a barrel.