Tech takes a tumble: Aus shares to open lower

Market Reports

by Rachael Jones

Australian shares are set to open lower this morning after mixed metals prices and tech taking a tumble on Wall Street. The Nasdaq 100 Index fell the most in three weeks. The S&P 500 slipped. The Dow ended higher, boosted by McDonald's shares rising after news of potential job cuts. Chevron also helped. Base metals closed mixed in London with copper seeing more gains due to concerns about a potential strike at BHP's (ASX:BHP) Escondida mine in Chile. Aluminium fell. Iron ore edged higher. Oil rose. The yield on the benchmark 10-year Treasury note fell the most in more than a week. Yields decline as bond as prices rise. Some reports attribute this to weakness in Brazil’s stock and currency and Turkey’s currency crisis.

Chinese trade numbers for the month of May are scheduled for release on Friday, with the figures perhaps attracting more interest in light of trade discussions between the US and China. The figures are expected to show both exports and imports growing solidly on an annual basis, albeit at a slower pace relative to the previously recorded month.

Figures from around the globe

Wall Street closed lower yesterday. The Dow Jones Industrial Average lost 0.4 per cent to close at 25,241, the S&P 500 lost 0.1 per cent to close at 2,770 and the NASDAQ dropped 0.7 per cent to close at 7635.

European markets closed lower yesterday: London’s FTSE fell 0.1 per cent, Paris dropped 0.2 per cent and Frankfurt was down 0.2 per cent.

Asian markets closed mixed yesterday: Tokyo’s Nikkei gained 0.9 per cent, Hong Kong’s Hang Seng rose 0.8 per cent, and China’s Shanghai Composite lost 0.2 per cent.

On the futures markets, the ASX futures are pointing to a 8pts loss. Yesterday, the Australian share market closed higher with the S&P/ASX 200 Index adding 32 points to close at 6057.

Company news

Boyuan Holdings (ASX:BHL) has sold the Peachtree Hotel to an experienced third-party hotel operator for $16.5 million. The CEO says the sale was part of a strategic review of the business. The purchase price back in 2017 was $15.5 million in October 2017. Boyuan Holdings (ASX:BHL) is a listed property company. In addition to its assets and operations in the lifestyle living sector, BHL provides project management and advisory services.

Shares in Boyuan Holdings (ASX:BHL) last traded at 58c on 5th of June.

Ex-Dividends

Two companies are going ex dividend today.
Contango Inc Gen (ASX:CIE) is paying 1.6c, 50 per cent franked.
Evolve Education Grp (ASX:EVO) is paying 1.84c unfranked.

Currencies

One Australian Dollar at 7:40AM was buying US76.27 cents,
56.87 Pence Sterling,
83.67 Yen  
64.65 Euro cents.

Commodities

Iron ore futures are pointing to a 1per cent drop.
Gold has dropped 10c to $US1301.30 an ounce.
Silver has added 4c to $US16.73 an ounce.
Oil was up $1.22c to $US65.95 a barrel.

Cryptocurrencies

The three most traded cryptocurrencies are trading mixed:
Bitcoin has added 0.8 per cent to US$7662,
Ethereum has lost 0.1 per cent to US$603,
EOS has added 3.2 per cent to US$14.18.