European shares take a dip: ASX poised to open lower

Market Reports

by Rachael Jones

Australian shares are poised to open lower this morning as European shares fell. BHP (ASX:BHP) and Rio (ASX:RIO) slid in London. US equity futures also dropped despite a fairly quiet day on the markets in the US due to the American Thanksgiving holiday. In Britain, the pound jumped and the euro strengthened after the UK and EU had a breakthrough over the Brexit deal.

Markets 

European markets closed lower yesterday: London’s FTSE fell 1.3 per cent, Paris drooped 0.8 per cent lower and Frankfurt was down 0.9 per cent.

Asian markets closed mixed, Tokyo’s Nikkei added 0.7 per cent, Hong Kong’s Hang Seng rose 0.2 per cent and China’s Shanghai Composite was down 0.2 per cent.

On the futures markets, the ASX futures are pointing to a 29 points fall. Yesterday, the Australian share market closed higher with the S&P/ASX 200 Index closing 49 points higher to 5691.

Company news

The Chairman of The Reject Shop (ASX:TRS) has released a statement to shareholders about the take over offer from Allensford. It says while the board of the Reject Shop will undertake further work to fully and carefully assess the offer its preliminary view is that the offer is opportunistic and undervalues the value of your shares based on the historical performance of the company and its future prospects.  $2.70 a share was offered - a 19 per cent premium to the stock's one-month average price of $2.27 - disclosed to the ASX on Wednesday morning. Shares jumped by as much as 17 per cent after the offer was outlined. Allensford owned 2.72. per cent of the issued shares in The Reject Shop at the time of the announcement. Shares in the Reject Shop (ASX:TRS) closed flat at $2.77 yesterday.

Ex-Dividends

Dulux Group (ASX:DLX) is paying 14 cents fully franked.
Rural co Holdings (ASX:RHL) is paying 6 cents fully franked.
Whitefield (ASX:WHF) is paying 9.75 cents fully franked.

Currencies

One Australian Dollar at 7:40AM was buying US72.57 cents, 56.36 Pence Sterling, 81.98 Yen and 63.63 Euro cents.

Commodities

Iron ore futures are pointing to 2 per cent fall
Gold fell $0.10 to $US1227.90 an ounce.
Silver was down 3 cents at $US14.60 an ounce.
Oil shed $0.78 cents to $US53.85 a barrel.

Cryptocurrencies

Bitcoin has fallen 0.7 per cent to US$4456, Ethereum has dropped 2.2 per cent to US$130.20 and EOS was down 1.3 per cent to US$3.70.