Wall St closed for George HW Bush funeral: ASX set to open higher

Market Reports

by Rachael Jones

Australian shares are poised to open higher this morning as global selling slowed somewhat. Wall Street was closed yesterday for the funeral of former president George HW Bush who died on Friday 30 November. European and Asian stocks dropped on Wednesday and the Australian dollar fell almost 1 per cent, dropping below US73 cents.


European markets now which closed lower yesterday: London’s FTSE fell 1.4 per cent, Paris dropped 1.4 per cent and Frankfurt shed 1.2 per cent.

Asian markets closed lower, Tokyo’s Nikkei fell 0.5 per cent, Hong Kong’s Hang Seng dropped 1.6 per cent and China’s Shanghai Composite was down 0.6 per cent.

On the futures markets, the ASX futures are pointing to a 13 points gain. Yesterday, the Australian share market closed lower with the S&P/ASX 200 Index closing 45 points lower to 5668.

Local economic news 

We are set to see the Australian Bureau of Statistics for International Trade in Goods and Services, October 2018.
And Retail Trade, Australia, October 2018.

Company news

Fonterra Co-operative Group (ASX:FSF) has revised the pay out to farmers for their Farmgate Milk price range dropping it by at least 20 cents. Instead of $6.25-$6.50 per kgMS they are forecasted to get $6.00-$6.30 per kgMS. Fonterra Chairman John Monaghan says the change is due to the global milk supply remaining stronger relative to demand, which has driven a downward trend on the GlobalDairyTrade (GDT) index since May. He also says there could be abnormal El Nino weather pattern this summer in New Zealand which could impact farmers. Demand from China and Asia remains strong but he recommends farmers budget with caution. Shares in Fonterra Co-operative Group (ASX:FSF) closed 2.25 per cent lower to$4.34 yesterday.


Australian Masters Yield Fund No 4 (ASX:AYK) is paying 11 cents fully franked
Australian Masters Yield Fund No 5 (ASX:AYZ) is paying 42 cents fully franked
Collins Foods (ASX:CKF) is paying 9 cents fully franked
Pendal Group (ASX:PDL) is paying 30 cents 15 per cent franked
Talisman Mining (ASX:TLM) is paying 6.375 cents fully franked
Webster (ASX:WBA) is paying 3 cents fully franked


One Australian Dollar at 8:40AM was buying US72.72 cents, 57.12 Pence Sterling, 82.31 Yen and 64.12 Euro cents.


Iron ore futures are pointing to 0.3 per cent gain
Gold fell $3.70 to $US1243 an ounce.
Silver was down 7 cents at $US14.57 an ounce.
Oil fell $0.48 to $US52.77 a barrel.