Earnings misses knock Wall St: ASX to open lower

Market Reports

by Rachael Jones

We are set to see Australian stocks open lower this morning as earnings misses knocked Wall Street . After soaring the previous session, and pressing higher in early London trade, base metals ended lower amid speculation Russia could nationalise aluminium producer Rusal to help it survive the impact of US sanctions. 

In New York, all three benchmarks were lower near the close, reflecting earnings misses from Procter & Gamble and Phillip Morris. Apple fell after Taiwan Semiconductor's disappointing forecast. Treasury yields pushed above 2.9 percent for the first time since February.

Tech stocks either as they fell for the first time in four days. 

Meanwhile, commodities prices struggled. And as gains from aluminium, nickel and oil faltered on Thursday, the rallies have spurred speculation inflation will pick up. 

Figures from around the globe

Wall Street closed lower yesterday. The Dow Jones Industrial Average fell 0.3 per cent to close at 24,665, the S&P 500 lost 0.6 per cent to close at 2,693 and the NASDAQ dropped 0.8 per cent to close at 7238.

European markets closed mixed: London’s FTSE added 0.2 per cent, Paris rose 0.2 per cent higher and Frankfurt ended 0.2 lower.

Asian markets closed higher: Tokyo’s Nikkei added 0.2 per cent, Hong Kong’s Hang Seng rose 1.4 per cent, and China’s Shanghai Composite gained 0.8 per cent.

Taking all of this into equation, the ASX futures are pointing to a 10 points drop. Yesterday the Australian share market closed higher with the S&P/ASX 200 Index closing 20 points higher at 5881.

Company news 

REA Group Limited (ASX:REA) announced that realestate.com.au has made the final payment of $104.5 million to take over iProperty Group.The payment relates to the acquisition of 100 per cent of iProperty in accordance with the terms of the Scheme Booklet.The take over plan was first announced to the market on 2 November 2015.
REA Group is a multinational digital advertising business specialising in property.
It operates Australia’s leading residential and commercial property websites, realestate.com.au and realcommercial.com.au, Chinese property site myfun.com and a number of property portals in Asia via its ownership of iProperty Group.
REA Group also owns Smartline Home Loans Pty Ltd, an Australian mortgage broking franchise group, and holds a significant shareholding in property websites Move, Inc in the US and PropTiger in India.Shares in REA Group (ASX:REA) closed 0.4% lower to $78.66


One Australian Dollar at 7:40AM was buying US77.31 cents, 54.89 Pence Sterling, 83.01 Yen and 62.62 Euro cents.


Iron ore futures are pointing to a 1.1 per cent gain.
Gold has dropped $4.70 to $US1348.00 an ounce.
Silver is flat at $US17.25 an ounce.
Oil has fell $0.51 to $US68.16 a barrel.


The three most traded cryptocurrencies are trading higher: Bitcoin has gained 1.2 per cent to US$8271, Ethereum added 6.8 per cent to US$557 and Ripple increased 7.1 per cent to US$0.76.