US stocks trade lower: Aus shares to open higher

Market Reports

by Rachael Jones

US stocks were trading lower yesterday as household goods makers and health care companies slumped. Despite this Australian shares are set to rise this morning. Energy companies are on the climb. Last week, President Donald Trump said the US would put tariffs of as much as 25 per cent on some Chinese imports from next month. Those tariffs target industrial and agricultural machinery, aerospace parts and communications technology. Boeing, the single largest US exporter to China, fell nearly 1 per cent, while construction equipment maker Caterpillar declined 1.4 per cent.

Figures from around the globe:

Wall Street closed mixed yesterday. The Dow Jones Industrial Average ended the session 0.4 per cent lower to close at 24,987, the S&P 500 lost 0.2 per cent to close at 2,774 and the NASDAQ gained 0.01 per cent to close at 7747.

European markets closed lower yesterday: London’s FTSE dropped 0.03 per cent, Paris fell 0.9 per cent and Frankfurt lost 1.4 per cent.

Looking at how the Asian markets closed now , Tokyo’s Nikkei closed 0.8 per cent lower yesterday while Hong Kong’s Hang Seng and China’s Shanghai Composite were closed.

On the futures markets, the ASX futures are pointing to a 36pts gain. Yesterday, the Australian share market closed higher with the S&P/ASX 200 Index adding 10 points to close at 6104.

Company news

British bank CYBG (ASX:CYB) a spin off of National Australia Bank, is set to take over rival Virgin Money in a deal valuing the lender at around $3 billion. The deal will create the UK's first true national banking competitor. Under the terms of the Offer, Virgin Money Shareholders will receive: 1.22 New CYBG Shares in exchange for each Virgin Money Share. Based on the Closing Price of 306 pence per CYBG Share on 15 June this year - that being the last Business Day before the date of this Announcement, the Offer values each Virgin Money Share at 371 pence and Virgin Money's ordinary shares on a fully diluted basis at approximately £1.7 billion. The combined group will be headquartered in Glasgow. Shares in Cybg (ASX:CYB) closed 0.82 per cent higher to $5.56 yesterday.

Currencies 

One Australian Dollar at 7:40AM was buying US74.25 cents,
56.07 Pence Sterling,
82.10 Yen 
63.90 Euro cents.

Commodities

Gold has gained $2.10 to $US1281 an ounce.
Silver was flat $US16.48 an ounce.
Oil was up 82c to $US65.67 a barrel.

Cryptocurrencies

The three most traded cryptocurrencies are trading higher:
Bitcoin has added 3.2 per cent to US$6,754,
Ethereum has gained over 3 per cent to US$519.86 
EOS has risen over 1.8 per cent to US$10.72.


 

Rachael Jones

Finance News Network
Rachael comes to FNN after working for Fairfax Media covering international breaking news, including the global economy and politics. She joined FNN in February 2018. She has reported on Australia’s finance news for various organisations since 2000 and has also interviewed a number of key business players, including Bill Gates. Rachael has also worked across a number of countries, including the UK and the US.