US stocks rise for third day, iron ore price surges: Aus shares to open higher

Market Reports

by Anna Napoli

Following positive leads from US markets, the Australian share market looks set to open in positive territory. US stocks rose for a third day as robust results from Warren Buffett’s Berkshire Hathaway lifted financial shares, while higher oil prices gave the energy sector a boost. Facebook also surged 4.4 per cent on reports the social media giant is in talks with banks to incorporate users financial information into messenger. Strong second-quarter earnings have pushed the S&P 500 to its highest level since January despite ongoing tariff threats from the US and China.

On the commodities front, global oil prices rose on the back of news OPEC Sources said Saudi crude production fell in July, raising concerns about global oil supplies as the US prepares to reinstate sanctions against Iran. Gold prices fell under pressure from a stronger US dollar, and the iron ore price jumped by around 2.2 per cent edging closer to $US70 a tonne.

Local economic news

The Reserve Bank Board meets to decide interest rate settings, no change in rates is expected, and the Performance of construction figures for July are released.

Markets

Wall Street closed higher on Monday. The Dow Jones Industrial Average closed 0.2 per cent higher to close at 25,502, the S&P 500 closed 0.4 per cent higher to close at 2,850 and the NASDAQ gained 0.6 per cent to close at 7860.

European markets closed mixed yesterday: London’s FTSE added 0.1 per cent, Paris fell 0.03 per cent and Frankfurt closed 0.1 per cent lower.

Asian markets closed mixed, Tokyo’s Nikkei fell 0.1 per cent lower, Hong Kong’s Hang Seng added 0.5 per cent and China’s Shanghai Composite dropped 1.3 per cent.

Back home, the SPI futures are pointing to a 6pts gain. Yesterday, the Australian share market closed higher with the S&P/ASX 200 Index adding 38 points to close at 6273.

Company news

Fleet leasing and financial services company, Eclipx Group (ASX:ECX) has downwardly revised its net profit guidance for Financial Year 18 to a range of $77 to $80 million which is an increase of 13 to 17 per cent on the same period last year. Previously the company had expected 27 to 30 per cent growth. The company says GraysOnline auction is being affected both by a ten-year low in bank initiated insolvencies in Australia, and a buoyant construction industry, resulting in reduced auctioned equipment disposals. Shares in Eclipx Group (ASX:ECX) closed 0.33 per cent lower to $3.04.
yesterday.

Reporting season

We can watch out for Capilano Honey (ASX:CZZ), Navitas (ASX:NVT) and Transurban Group (ASX:TCL), which are set to report financial results today.

Ex-dividend

Djerriwarrh (ASX:DJW) is paying 10c fully franked
Opus Group (ASX:OPG) is paying 13c fully franked

Currencies 

One Australian Dollar at 7:40AM was buying US73.85 cents, 57.07 Pence Sterling, 82.28 Yen and 63.93 Euro cents.

Commodities

Iron ore futures are pointing to 1.5 per cent gain.
Gold dropped $7.60 to $US1216 an ounce.
Silver fell 16c at $US15.30 an ounce.
Oil added $0.41 to $US68.90 a barrel.

Cryptocurrencies

The three most traded cryptocurrencies are trading lower: Bitcoin has dropped almost 2 per cent to US$6929, Ethereum has lost 1.6 per cent to US$405 and EOS was down 0.4 per cent to US$7.02.