IMF reignites global growth fears: Aus shares to open lower

Market Reports

by Anna Napoli

Australian shares are set to open lower following negative leads from Wall Street. Stocks came under pressure for a number of reasons including new trade war threats against Europe by President Trump. The International Monetary Fund also slashed forecasts for global and economic growth reigniting fears of a slowdown. The IMF is now tipping 3.3 per cent growth in 2019, down from 3.5 per cent. Global Oil prices fell on Tuesday after Russia suggested it would increase output and iron has also pulled back slightly.

Markets

To the figures from around the globe: Wall Street closed lower yesterday: The Dow Jones Industrial Average shed 0.7 per cent to 26,151, the S&P 500 lost 0.6 per cent to 2878 and the NASDAQ dropped0.6 per centto7909.

European markets closed lower: London’s FTSE fell 0.4 per cent, Paris lost 0.7per cent and Frankfurt dropped 0.9 per cent.

Asian markets closed mixed, Tokyo’s Nikkei gained 0.2 per cent, Hong Kong’s Hang Seng gained 0.3per cent and China’s Shanghai Composite fell 0.2 per cent.

Locally the SPI futures are down 16 points. Yesterday the Australian share market closed flat at 6222.

Local economic news

Today all eyes will be on the monthly consumer confidence figures from the Westpac and Melbourne Institute.

Company news

Las Vegas Casino Giant Wynn has scrapped discussions over a potential $10 billion takeover offer for Crown Resorts (ASX:CWN). Crown confirmed yesterday it was in talks with Wynn. But in a tersely worded statement released to the US Securities and Exchange Commission Wynn has shut down purchase talks, blaming the premature disclosure of what the gambling giant described as preliminary discussions. The news saw Wynn shares dip over 3 per cent and Crown shares are likewise expected to dive today after rising 19 per cent on the news yesterday. Shares in Crown Resorts (ASX:CWN) closed 19.68 per cent higher yesterday at $14.05.

Ex-Dividends
Future Generation Investment Company Ltd (ASX:FGX) is paying 2.3 cents fully franked
WAM Active Limited (ASX:WAA) is paying 2.95 cents fully franked
WAM Capital Limited (ASX:WAM) is paying 7.75 cents fully franked
WAM Research Ltd (ASX:WAX) is paying 4.85 cents fully franked
WAM Leaders Limited (ASX:WLE) is paying 2.65 cents fully franked
WAM Microcap Limited (ASX:WMI) is paying 2.25 cents fully franked

Currencies

One Australian Dollar at 7:25 AM was buying 71.27 US cents, 54.60 Pence Sterling, 79.22 Yen and 63.28 Euro cents.

Commodities

Iron Ore futures suggest a 0.6 per cent fall
Gold has added $6.30 to US$1308 an ounce.
Silver has fallen $0.03 to US$15.19 an ounce.
Oil was $0.18 lower at US$64.22 a barrel.