Global sell off continues: Aus shares to defy leads and lift at open

Market Reports

by Anna Napoli

Australian shares look set to open slightly higher following mixed leads from Wall Street. US stocks struggled to maintain ground on Monday as worries over the global economy overshadowed news that the special counsel found no collusion with Russia on the part of President Donald Trump. The news did see the Dow Jones notch up a small gain on Monday but fears over global economic growth kept the broader market capped. The concerns were reignited last week after the Federal Reserve indicated it will put interest rates on hold this year, which triggered a rally in global bonds. Key manufacturing measures released on Friday in the US and Germany added to concerns the trade inflicted slowdown is not yet over. Oil has been mixed on the back of the concerns while gold hit a three week high as investors flee to safety. Iron ore is down slightly.

Markets

Taking a look at global markets: Wall Street closed mixed yesterday: The Dow Jones Industrial Average closed 0.1 per cent higher at 25,517, the S&P 500 lost 0.1 per cent to 2798 and the NASDAQ fell 0.1 per cent to 7638.

European markets closed lower: London’s FTSE fell 0.4 per cent, Paris shed 0.2 per cent and Frankfurt dropped 0.2 per cent.

Asian markets closed lower, Tokyo’s Nikkei lost 3 per cent,Hong Kong’s Hang Seng dropped over 2 per cent and China’s Shanghai Composite dipped almost 2 per cent.

Returning home, the SPI futures are up 12 points. Yesterday the Australian share market closed 69 points lower at 6126 recording the second-worst day of 2019.

Company news

BINGO Industries (ASX:BIN) has completed its acquisition of Dial-a-Dump. BINGO paid $577.5 million for the waste management and services provider. The purchase was partially funded by a $425 million underwritten Entitlement Offer. Dial-a-Dump Founder Ian Malouf now has a relevant interest in around 12 per cent of BINGO as a result of the deal. The company says the acquisition reinforces its focus of growing a network of strategic waste infrastructure assets. Shares in Bingo Industries (ASX:BIN) closed 1.34 per cent lower at $1.48.

Ex-Div

ERM Power Ltd (ASX:EPW) is paying 7.5 cents fully franked
Pacific Energy Limited (ASX:PEA) is paying 1 cent fully franked
Shaver Shop Group Ltd (ASX:SSG) is paying 2 cents 80 per cent franked

Currencies

One Australian Dollar at 7:35 AM was buying 71.09 US cents, 53.9 Pence Sterling, 78.21 Yen and 62.87 Euro cents.

Commodities

Iron Ore futures suggest a 0.3 per cent gain
Gold has added $9.70 to US$1328 an ounce.
Silver has gained $0.13 to US$15.54 an ounce.
Oil was $0.07 lower at US$58.97 a barrel.