US tech rally continues: Aus shares to open lower

Market Reports

by Rachael Jones

Australian shares are set to open lower today, as Wall Street's tech rally wave continues.There are bubble warnings as the tech giants keep surging ahead with the Nasdaq Composite Index closing a fresh record. At $3.8 trillion, the combined value of Facebook, Amazon, Apple, Microsoft and Google’s parent Alphabet tops the annual gross domestic product of Germany. But strategists say tech’s dominance is far from over, as more traditional industries take on the internet and upgrade their equipment and innovations such as artificial intelligence mean new areas of growth.
As concerns about political crises eased in Europe, the yield on the US 10-year Treasury recouped 4 more basis points to reach 2.94 per cent. Gold and oil are down put iron ore futures are pointing to a slight rise. Meanwhile, the Australian dollar has leapt more than 1 per cent higher overnight.

In policital news - The White House set a time for Trump’s first meeting with Kim: 9 a.m. Singapore time on June 12.

Local economic news

It’s the Reserve Bank Board Meeting today – they’ll be discussing Monetary Policy Decision

Figures from around the globe

Wall Street closed higher yesterday. The Dow Jones Industrial Average added 0.7 per cent to close at 24,814, the S&P 500 gained 0.5 per cent to close at 2,747 and the NASDAQ increased 0.7 per cent to close at 7606.

European markets closed higher yesterday: London’s FTSE gained 0.5 per cent, Paris added 0.1 per cent and Frankfurt was up 0.4 per cent.

Asian markets closed higher yesterday: Tokyo’s Nikkei gained 1.4 per cent, Hong Kong’s Hang Seng rose 1.7 per cent, and China’s Shanghai Composite added 0.5 per cent.

On the futures markets, the ASX futures are pointing to a 23pts fall. Yesterday, the Australian share market closed higher with the S&P/ASX 200 Index adding 35 points to close at 6026.

Company news

The Board of property development and investment group the Johns Lyng Group (ASX:JLG) is pleased to advise that the Company continues to trade in line with the 10 per cent forecast upgrade given in March this year. At that time the Company advised it expected revenue to be in the order of $303m and EBITDA in the order of $23.3m being just over 10 per cent ahead for the full year (FY18) on a normalised basis. In its half year results posted in February, the Group registered 88.6 per cent growth in EBITDA against the previous corresponding period, after it listed on the ASX in October 2017. The performance is attributable in part to their role in the recovery from Cyclone Debbie in Queensland, and the recent flooding event in Tasmania.
Shares in Johns Lyng Corp (ASX:JLG) closed flat at $1.41 yesterday.


Perth-listed, Houston-based junior driller Antares Energy (ASX:AZZ)has changed its name to Big Star Energy (ASX:BNL). The ASX has listed a new ticker name for the company. The company has also launched a new website. They will continue to work with the ASX regarding the reinstatement of its shares to the Official List. The company collapsed into administration back in May 2016 after failing to complete the $US235.9 million worth of land deals that involved what Antares management described as their Northern Star and Big Star projects.

Ex dividends

One company is going ex dividend today.
Vietnam Industrial (ASX:VII) is paying 1.5 unfranked

Currencies

One Australian Dollar at 7:40AM was buying US76.48 cents, 57.46 Pence Sterling, 83.97 Yen and 65.40 Euro cents.

Commodities

Iron ore futures are pointing to a 0.9per cent gain.
Gold has lost $3.40 to $US1296 an ounce.
Silver has fallen 2c to $US16.43 an ounce.
Oil was down 93c to $US64.88 a barrel.

Cryptocurrencies

The three most traded cryptocurrencies are trading lower:
Bitcoin has lost 2.2 per cent to US$7547,
Ethereum has lost 3.2 per cent to US$598
and EOS has droped 5.6 per cent to US$13.76.