Australian shares are set to open in negative territory after stocks plummeted in the US overnight. The Dow Jones plunged almost 800 points, while the S&P 500 was driven lower by financials, which shed almost 4.4 per cent. The falls came on the back of doubts of a trade deal being reached between the US and China. Concerns about the US economy also rattled investors, with the gap between long-term and short-term bond yields the narrowest in a decade. And, this is viewed by some as an indicator of recession.
Local economic news
Back home we do have some economic growth figures out today from the ABS which are expected to be quite strong, and this may help our market
The November new vehicle sales figures from the Federal Chamber of Automotive Industries are also due .
Wall Street closed weaker yesterday. The Dow Jones Industrial Average lost 3.1 per cent to 25,027 the S&P 500 dropped 3.2 per cent to 2,700 and the NASDAQ plunged 3.8 per cent to 7158.
European markets closed lower yesterday: London’s FTSE fell 0.6 per cent, Paris dropped 0.8 per cent and Frankfurt shed 1.1 per cent.
Asian markets closed mixed, Tokyo’s Nikkei fell 2.4 per cent, Hong Kong’s Hang Seng increased 0.3 per cent and China’s Shanghai Composite was up 0.4 per cent.
On the futures markets, the ASX futures are pointing to a 75 points fall. Yesterday, the Australian share market closed lower with the S&P/ASX 200 Index closing 58 points lower to 5713.
AMP (ASX:AMP) has today announced Alex Wade will join its leadership group. He will report to AMP Chief Executive Francesco De Ferrari and will lead the continuing transformation of AMP's advice business. Mr Wade will take over from Jack Reagen, who will retire after 20 years of service. It has been a difficult year for the bank after evidence at the Banking Royal Commission lead to the resignations of Chairman Catherine Brenner CEO Craig Meller and Chief Counsel Brian Salter. Shares in AMP (ASX:AMP) closed 1.6 per cent lower to$2.45 yesterday.
Cordish Dixon Private Equity Fund I (ASX:CD1) is paying 7.5 cents unfranked
Cordish Dixon Private Equity Fund II (ASX:CD2) is paying 9 cents unfranked
One Australian Dollar at 8:40AM was buying US73.39 cents, 57.74 Pence Sterling, 82.78 Yen and 64.72 Euro cents.
Iron ore futures are pointing to 1.3 per cent gain
Gold rose $4.10 to$US1244 an ounce.
Silver was up 10 cents at $US14.60 an ounce.
Oil fell $0.09 to $US52.86 a barrel.