Wall Street rebounds: Aus shares shrug off strong leads to open lower

Market Reports

by Anna Napoli

The Australian share market looks set to open lower this morning despite solid rises on Wall Street on Tuesday. The Dow and the S&P 500 broke a 4 day losing streak as a rebound in the Turkish lira boosted investor sentiment. The Turkish lira regained around 8 per cent after falling to a record low on Monday. Tech and financial shares contributed to gains in US markets, Apple and Amazon rose 0.4 percent and 1.2 percent respectively while Goldman Sachs, Citigroup and Morgan Stanley all closed more than 1 percent higher.

On the commodities front, oil prices were nearly flat on Tuesday, pressured by a stronger US dollar, gold prices steadied and iron ore was lower.

Local economic news

The Wage price index for the June quarter and the Westpac and Melbourne Institute Monthly consumer confidence figures are both due for release.

Markets

Wall Street closed higher on Tueday. The Dow Jones Industrial Average closed 0.5 per cent higher to close at 25,300, the S&P 500 gained 0.6 per cent to close at 2,840 and the NASDAQ added 0.7 per cent to close at 7871.

European markets closed mostly lower yesterday: London’s FTSE lost 0.4 per cent, Paris was down 0.2 per cent and Frankfurt closed flat.

Asian markets closed mixed, Tokyo’s Nikkei added 2 per cent lower, Hong Kong’s Hang Seng lost 0.7 per cent and China’s Shanghai Composite dropped 0.2 per cent.

On the futures markets, the SPI futures are pointing to a 7 points fall. Yesterday, the Australian share market closed higher with the S&P/ASX 200 Index adding 47 points to close at 6300.

Company news

New Energy Solar (ASX:NEW) has announced the successful completion of its security purchase plan. The solar energy business says around $22 million was raised under the purchase plan. The proceeds will be used to partially fund the acquisition of the Beryl Solar Farm in NSW and to provide financial flexibility. Shares in New Energy Solar (ASX:NEW) closed 0.70 per cent lower to $1.42.

Reporting Season

Fairfax Media (ASX:FXJ),  CSL (ASX:CSL) and Wesfarmers (ASX:WES)  are all due to release results.

Ex-dividends

Commonwealth Bank (ASX:CBA) is paying $2.31 fully franked
Genworth Mortgage (ASX:GMA) is paying 12c fully franked
ResMed Inc (ASX:RMD) is paying 3.51c unfranked
Suncorp Group (ASX:SUN) is paying 48c fully franked
TABCORP Holdings (ASX:TAH) is paying 10c fully franked

Currencies

One Australian Dollar at 7:40AM was buying US72.41 cents, 56.95 Pence Sterling, 80.54 Yen and 63.85 Euro cents To Commodities

Commodities

Iron ore futures are pointing to 0.9 per cent fall.
Gold added $2.20 to $US1201.10 an ounce.
Silver was up 7c at $US15.05an ounce.
Oil dropped 64c to $US65.93 a barrel.

Cryptocurrencies

The three most traded cryptocurrencies are trading lower: Bitcoin has dropped 2.7 per cent to US$6128, Ethereum has fallen almost 9 per cent to US$263 and EOS was down 5.7 per cent to US$4.37.