Tech weakens and oil plunges in the US: ASX set to open lower

Market Reports

by Rachael Jones

The Australian share market is set to open sharply lower this morning following on from US stocks falling as sinking oil prices hits energy companies. Trump says breaking with Saudi Arabia would send oil prices 'through the roof', despite a US journalists death by Saudi agents. Tech continued to plunge with Apple Inc. leading the way. Last month stocks fell sharply amid heightened concerns about rising interest rates, slowing economic growth and global trade tensions. Treasuries advanced with the dollar and gold fell. And Bitcoin has plunged to a new low for the year.

Markets 

Wall Street closed lower yesterday. The Dow Jones Industrial Average fell 2.2 per cent to close at 24,466, the S&P 500 dropped 1.8 per cent higher to 2,642 and the NASDAQ was down 1.7 per cent to 6909

European markets closed lower yesterday: London’s FTSE fell 0.8 per cent, Paris dropped 1.2 per cent lower and Frankfurt was down 1.6 per cent.

Asian markets closed lower, Tokyo’s Nikkei fell 1.1 per cent, Hong Kong’s Hang Seng dropped 2.02 per cent and China’s Shanghai Composite shed 2.1 per cent.

On the futures markets, the ASX futures are pointing to a 65 points fall. Yesterday, the Australian share market closed lower with the S&P/ASX 200 Index closing 22 points lower to 5672.

Company news

Internet auction website in New Zealand Trade Me (ASX:TME) has received a preliminary, non-binding, indicative proposal from Apax Partners to acquire 100 per cent of the shares in Trade Me at a cash price of NZ$6.40 per share. Trade Me has provided Apax with due diligence access on an exclusive basis until 12 December to facilitate a binding offer. This exclusive access is subject to a “fiduciary carve out” that permits Trade Me to engage with third parties should it receive any unsolicited proposals. The Board of Trade Me notes that there is no certainty the indicative proposal will result in an offer or any other transaction for Trade Me. The Board advises shareholders that they do not need to take any action in relation to the indicative proposal. Trade Me is being advised by Goldman Sachs.Shares in Trade Me Group (ASX:TME) closed 0.8 per cent lower to $4.78 yesterday.

Currencies

One Australian Dollar at 8:40AM was buying US72.22 cents, 56.49 Pence Sterling, 81.44 Yen and 63.52 Euro cents.

Commodities

Iron ore futures are pointing to 2.7 per cent fall.
Gold dropped $3.20 to $US1222 an ounce.
Silver was down 11 cents at $US14.29 an ounce.
Oil shed $3.96 cents to $US53.24 a barrel.

Cryptocurrencies

Bitcoin has dropped almost 10 per cent to US$4448, Ethereum has fallen 11 per cent to US$134 and XRP was down 9.4 per cent to US$0.44.
 

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.