Renewed global growth concerns as US yields fall again: Aus shares to open lower

Market Reports

by Anna Napoli

Last Movement
$0.660 $0.010 1.54%
Data Source:
Last Updated: 19/06/2019 2:10 PM

The local share market is poised to open lower following weak leads from Wall Street. US markets fell on Wednesday as bond yields declined again causing renewed concerns about the economic outlook. The 10-year Treasury note yield fell to its lowest level since September 2017 before rebounding to about 2.26 per cent. Bank shares fell along with the yields with Bank of America and JP Morgan Chase both trading lower. Increasing trade tensions between the US and China also weighed on markets. Retailer Abercrombie & Fitch shares fell more than 26 per cent after the company warned its same-store sales could be flat if tariffs remain unchanged.

Meantime, US Special Counsel Robert Mueller has broken a two year silence contradicting President Trump's contention that the Mueller report on Russian interference in the 2016 election completely exonerated him. Mr Mueller said charging the President was not an option for him because US Department of Justice rules. Mr Mueller also announced he was resigning and returning to private life.

Local economic news

Today the ABS will release the Private capital expenditure figures (March quarter) as well building approvals. (leading indicators for home building). 
To the figures from around the globe: Wall Street closed lower yesterday: The Dow Jones Industrial Average lost0.9 per cent to 25,126, the S&P 500 fell 0.7 per cent to close at 2783 and the NASDAQ dipped0.8 per cent to 7547.

European markets closed weaker: London’s FTSE fell 1.2 per cent, Paris dropped1.7 per cent andFrankfurt shed1.6 per cent.

Asian markets closed mixed,Tokyo’s Nikkei fell1.2 per cent, Hong Kong’s Hang Seng dropped 0.6 per cent and China’s Shanghai Composite added 0.2 per cent.

Taking all of this into equation, the SPI futures aredown31points. Yesterday, the Australian share market closed 45points (0.7per cent)lower at 64440.

Company news

Shine Corporate (ASX:SHJ) has announced that a settlement agreement has been reached to finalise the shareholder class action brought against the Company and announced to the market in 2017. The claim dates back to January 2016, when the listed group of law firms' stock price fell 73 per cent in one day after it confessed to over-egging recoverable "work in progress" amounts. Shares is Shine Corporate(ASX:SHJ) closed flat at $0.69 yesterday.

Ex-Dividends 
CSR Limited (ASX:CSR) is paying 13 cents 50 per cent franked
Gryphon Capital Income Trust (ASX:GCI) is paying 0.88 cents unfranked
Orica Limited (ASX:ORI) is paying 22 cents unfranked
Premier Investments Limited (ASX:PMV) is paying 33 cents fully franked
Qualitas Real Estate Income Fund (ASX:QRI) is paying 0.6463 cents unfranked
Ruralco Holdings (ASX:RHL) is paying 10 cents fully franked
Technology One Limited (ASX:TNE) is paying 3.15 cents 75 per cent franked

Currencies
One Australian Dollar at 7:40AM was buying 69.17US cents, 54.78 Pence Sterling, 75.81 Yen and 62.15 Euro cents.

To Commodities 
Iron Ore futures suggest a 0.1 per cent fall.
Gold has gained $2.00 to US$1284.50 an ounce.
Silver was up $0.07 to US$14.39 an ounce.
Oil fell $0.08 to US$59.06a barrel.

Anna Napoli

Finance News Network
Anna joined FNN February 2018 and also works with Channel 7 as a freelance producer. Anna has also worked as a lawyer and lecturer. She has also presented news updates for interstate news with Southern Cross Austereo.