Trump ‘not happy’ with US rates: Aus shares to see soft start

Market Reports

by Jessica Amir

The Australian share market is eyeing a soft start at the open, after US equity markets closed in the red on the back of US President Donald Trump criticising the Federal Reserve saying he’s ‘not happy’ after the US Fed recently raised rates. Some of major US banks stocks slipped 1 per cent and that pulled down the broader market with the S&P 500 losing 0.4 per cnet.

On the commodities front, the US crude oil price gained momentum with falling supply pushing the price up.

Taking all of this into equation, the ASX futures are pointing to a 8 points fall. The local share market re-entered its fresh 10-year highs today with tech and industrials stocks flexing their muscle. And the S&P/ASX 200 index closed 0.28 per cent/18 points higher at 6,263.

US economic news 

The leading US economic index rise more than expected by 0.5 per cent in June, beating expectations of a rise of 0.4 percent, taking the leading gauge of economic growth to eight straight months gains pointing to continued solid growth in American.

Local economic news

No data to report today, of course yesterday we learnt the unemployment rate remained steady at 5.4 per cent, as expected in seasonally adjusted terms, while number of people employed increased by 51,000 in June, far surpassing expectations of a rise of 17,000, after the number of employment people rose by 13,500 in the prior month.

Markets

Wall Street closed Wall Street closed lower on Thursday. The Dow Jones Industrial Average lost 0.5 per cent to close at 25,065, the S&P 500 closed 0.4 per cent lower to close at 2,804 and the Nasdaq lost 0.4 per cent to close at 7825.

European markets closed mixed: London’s FTSE added 0.1 per cent, Paris was down 0.6 per cent and Frankfurt fell 0.6 per cent.

Asian markets closed lower, Tokyo’s Nikkei closed down 0.1 per cent, Hong Kong’s Hang Seng fell 0.4 per cent and China’s Shanghai Composite was down 0.5 per cent.

Company news

Tabcorp (ASX:TAH) inked a deal to exit out of the UK wagering and gaming business, Sun Bets and will pay $71 million to News UK, who it had partnered with since 2016. Tabcorp says it decided to exit as it performed below expectations and didn’t see a material improvement over the next 18 months. Because of the exit, it will see a write down of $91 million (recorded as a significant item) in the 30 June 2018 financial year. For the FY19, it expects to pay up to $10 million in other close related costs. Tabcorp (ASX:TAH) closed 0.64 per cent lower yesterday at $4.66.

Real estate investment trust, Charter Hall Long WALE Reit (ASX:CLW) has acquired a Brisbane CBD office building, bolstering its portfolio. It comes after it snapped up 50 per cent of 40 Tank Street, Brisbane, (a 10 story office building which fully leased to QLD Police). The other 50 per cent was purchased by Charter Hall’s Direct PFA Fund. The total purchase price, $93 million, ($46.5 million) paid by CLW. Settlement is booked for the end of August and it will not change earnings guidance for FY18. Charter Hall reports its financial results on 10 August so we’ll learn how this transaction will bolster FY19 then. Shares in Charter Hall Long WALE Reit (ASX:CLW) closed 0.7 per cent lower at $4.13.

Ex-dividends

Euroz (ASX:EZL) is going ex-dividend today, paying 9.25 cent full franked.

Currencies

One Australian Dollar at 7:40AM was buying 73.59 US cents, 56.55 Pence Sterling, 82.74 Yen and 63.22 Euro cents.

Commodities

Iron ore futures are pointing to 0.2 per cent fall.
Gold lost $5.30 to $US1223 an ounce.
Silver was down 24c at $US15.33 an ounce.
Oil was up 38c to $US68.13 a barrel.

Cryptocurrencies

Bitcoin has added 1.4 per cent to US$7444, Ethereum has lost 2.2 per cent to US$468 and EOS has dropped 4.2 per cent to US$8.28.