Dollar slumps after RBA hints at future rate cut: ASX set to open higher

Market Reports

by Rachael Jones

Australian shares are set to edge higher at the open, as shares in Europe and the US rebounded. Apple rose 2 per cent helping tech stocks rebound in the US. In the UK, Theresa May outlined her new Brexit proposals which are being voted on next month. Her previous agreement has been rejected three times by UK lawmakers. The Australian dollar slumped yesterday after the Reserve Bank of Australia (RBA) suggested strongly that an interest rate cut is now imminent.

Local economic

The Australian Bureau of Statistics will release construction work done first quarter

Markets

Wall Street closed higher yesterday: The Dow Jones Industrial Average added 0.8 per cent to 25,877, the S&P 500 gained 0.9 per cent to close at 2864 and the NASDAQ rose 1.1 per cent to 7786.

European markets closed higher: London’s FTSE added 0.3 per cent, Paris rose 0.5 per cent and Frankfurt gained 0.9 per cent.

Asian markets closed mixed, Tokyo’s Nikkei fell 0.1 per cent, Hong Kong’s Hang Seng dropped 0.5 per cent and China’s Shanghai Composite add 1.2 per cent.

Taking all of this into equation, the SPI futures are up 13 points. Yesterday, the Australian share market closed 24 points (0.4 per cent) higher at 6500.

Company news

CIMIC Group (ASX:CIM) company CPB Contractors has been selected as preferred proponent to work on Auckland Airport.The contract is for a capital work’s program on the international taxiway and remote stands project. Revenue to CPB Contractors is to be approximately NZ$200 million.Works include construction of an additional taxiway, a taxiway extension and six remote stands with in-ground jet fuel reticulation, for New Zealand’s largest and busiest airport. Shares in CIMIC Group (ASX:CIM) closed 0.3 per cent higher at $46.76 yesterday.

Ex-Dividends

Fortescue Metals Grp (ASX:FMG) is paying 60 cents fully franked
Gazal Corporation (ASX:GZL) is paying 17 cents fully franked

Currencies

One Australian Dollar at 7:40AM was buying 68.84US cents, 54.19Pence Sterling, 76.08 Yen and 61.68 Euro cents.

Commodities

Iron Ore futures suggest a 1.9 per cent gain..
Gold has dropped $2.80 to US$1275 an ounce.
Silver was down $0.02 to US$14.43 an ounce.
Oil fell $0.24 to US$62.97 a barrel.

 

Rachael Jones

Finance News Network
Rachael comes to FNN after working for Fairfax Media covering international breaking news, including the global economy and politics. She joined FNN in February 2018. She has reported on Australia’s finance news for various organisations since 2000 and has also interviewed a number of key business players, including Bill Gates. Rachael has also worked across a number of countries, including the UK and the US.