Oil drops, Dow surges: Aus shares to see flat start

Market Reports

by Jessica Amir

The Australian share market is set for a hesitant start after the oil price and iron ore price fell, which should pressure our mining and energy companies today, while in good news the Dow Jones surged to a record high.

But it wasn’t just the Dow that rocked higher, the broader S&P 500 did too, but the Dow saw the most shine, gaining 118 points after Boeing and telco play, Verizon’s shares climbed.

The optimism also came on the back of the corporate tax system being revamped while the Federal Reserve also kicked off its two-day policy meeting.

The only major index that didn’t close in positive territory was the tech heavy Nasdaq losing about 0.2 per cent.

US economic news 

The US government reported US Treasury yields rose with stronger than expected producer prices data in November offsetting demand.

It comes as producer prices rose 3.1 per cent over the 12 months, recording their biggest gain since January 2012

Local economic news

The RBA Governor will give a speech about an ‘eAustralian dollar’ and we will also hear from the Assistant Governor and Head of Payments Policy.


Wall Street closed mixed yesterday: The Dow Jones Industrial Average gained 0.5 per cent to close at 24,505, the S&P 500 added 0.2 per cent to close at 2,664 and the NASDAQ lost 0.2 per cent to close at 6,862.

European markets closed higher: London’s FTSE rose 0.6 per cent, Paris gained 0.8 per cent and Frankfurt 0.5 per cent.

Asian markets closed lower: Tokyo’s Nikkei lost 0.3 per cent, Hong Kong’s Hang Seng shed 0.6 per cent, and China’s Shanghai Composite fell 1.3 per cent.

And back home, the Australian share market closed higher yesterday: The S&P/ASX 200 Index closed 15 points up or 0.25 per cent higher to finish at 6,013.

On the futures market the SPI is 1 points down.

Company news

EBOS Group’s (ASX:EBO) CEO, Patrick Davies will stand down and be replaced by the firm’s Chief Financial Officer, John Cullity. The Australasian marketer, wholesaler and distributor of medical and animal products hot seat change over will take place on 31 March 2018. Outgoing CEO Patrick Davies will continue on as a contractor to assist with new and emerging opportunities. EBOS (ASX:EBO) closed 0.06 per cent higher yesterday to $16.80.

To ex-dividends

One companies are going ex-dividend today Plato Inc Max (ASX:PL8) is paying 0.45 per cent full franked.


Australian Dollar at 8.35am was buying 75.60 US cents, 56.78 Pence Sterling, 85.85 Yen and 64.38 Euro cents.


Gold has lost $1.00 to $US1,246 an ounce.
Silver has lost $0.05 to $U15.73 an ounce.
Oil has shed $0.56 to $US57.49 a barrel.

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