Optimism high for a China/US deal soon: ASX poised to open flat

Market Reports

by Rachael Jones

Australian shares are poised to open flat this morning after hitting a seven month high yesterday. US stocks saw a late rally to close at an almost six-month high as optimism over global growth renewed. According to reports this week American and Chinese officials have resolved most of the outstanding issues regarding the trade deal but are discussing how to implement it. Both countries have yet to agree on a number of important issues. Iron ore continues to rally as the Pilbara region sees growth with potential new mines on the back of the shortfall from Brazil after January's dam disaster. 


Wall Street closed higher yesterday: The Dow Jones Industrial Average higher 0.2 per cent to close at 26,218, the S&P 500 rose 0.2 per cent to close at 2,873 and the NASDAQ was up 0.6 per cent to close at 7896.

European markets closed higher: London’s FTSE rose 0.4 per cent, Paris added 0.8 per cent and Frankfurt added 1.7 per cent.

Asian markets closed up, Tokyo’s Nikkei closed 0.97 per cent higher, Hong Kong’s Hang Seng rose 1.2 per cent and China’s Shanghai Composite added 0.2 per cent.

Taking all of this into equation, the ASX futures are eyeing a lift of 1 point. Yesterday the Australian share market closed 0.7 per cent higher or 43 points at 6285.

Company news

Global education services provider Navitas (ASX:NVT) will say goodbye to their company secretary Hugh Hangchi next month after his resignation. He also served as Group General Counsel for the company. He has left to pursue another opportunity. He joined the Company shortly after its listing on ASX in 2004. He will be succeeded by Matthew Rumpus, currently Assistant Company Secretary and Senior Legal Counsel. Shares in Navitas (ASX:NVT) closed 0.4 per cent lower to $5.76 yesterday.


Harvey Norman (ASX:HVN) is paying 12 cents fully franked
Prime Financial (ASX:PFG) is paying 0.2 cents fully franked.


One Australian Dollar at 7:40 AM was buying 71.12 US cents, 54.07 Pence Sterling, 79.31 Yen and 63.32 Euro cents.


Iron Ore futures suggest a 0.3 per cent fall
Gold has shed $0.80 to US$1295 an ounce.
Silver has risen $0.05 to US$15.11 an ounce.
Oil has lost $0.12 to US$62.46 a barrel.