The Australian sharemarket looks set to open lower this morning following volatility on Wall Street last Friday. US sharemarkets fell after President Trump threatened tariffs on Mexico. The 5 per cent proposed tariff from June 10 would rise to 25 per cent unless illegal Mexican immigration to the US stops. The news saw auto stocks slump.
Meantime, global oil prices fell sharply as fresh trade worries raised concerns about the outlook for the global economy and oil demand.
Local economic news
There is a raft of economic data due out this week today the ABS issues the Business Indicators publication.
Also due out are surveys of manufacturing from AiGroup and CBA. CoreLogic issues the May data on home prices. ANZ job ads and the Melbourne Institute inflation gauge are issued. On Tuesday the Reserve Bank meets and economists are expecting a quarter of a per cent rate cut– the first move in almost three years.
In terms of data, the ABS releases the quarterly balance of payments On Wednesday the focus will be on the March quarter economic growth (GDP) estimates. Also on Wednesday, both AiGroup and the CBA release the May surveys on services activity. And the Federal Chamber of Automotive Industries issues the May data on new vehicle sales.
On Thursday the April figures on exports and imports are released. And on Friday, the comprehensive April data is released on new lending by financial intermediaries to the household and business sectors with the Performance of Construction index.
To the figures from around the globe: Wall Street closed lower on Friday: The Dow Jones Industrial Average lost 1.4 per cent to close at 24,815, the S&P 500 fell 1.3 per cent to close at 2752 and the NASDAQ retreated 1.5 per cent to 7453.
European markets closed lower on Friday: London’s FTSE fell 0.8 per cent, Paris also lost 0.8 per cent and Frankfurt was down 1.5 per cent.
Asian markets closed lower on Friday: Tokyo’s Nikkei fell 1.6 per cent, Hong Kong’s Hang Seng lost 0.8 per cent while China’s Shanghai Composite shed 0.2 per cent.
Taking all of this into equation, the SPI futures are down 24 points. On Friday, the Australian share market closed 5 points (0.1 per cent) higher at 6397.
PVH has completed it's takeover of Gazal Corporation(ASX:GZL).PVH paid cash consideration of A$6.00 per share and Gazal will now be removed from the ASX. PVH is a fashion and lifestyle company listed on the New York Stock Exchange with a portfolio that includes the likes of Calvin Klein, Tommy Hilfiger and Van Heusen. Shares in Gazal Corporation (ASX:GZL) last trading at $6.17 since being suspended on the 15 of May.
ALS Ltd (ASX:ALQ) is paying 11.5 cents 35 per cent franked
NAOS Ex-50 Opportunities Company Ltd (ASX:NAC) is paying 1.35 cents fully franked
NB Global Corporate Income Trust (ASX:NBI) is paying 0.875 cents unfranked
NAOS Small Cap Opportunities Company Ltd (ASX:NSC) is paying 1 cent fully franked
One Australian Dollar at 7:40 AM was buying 69.35 US cents, 54.91 Pence Sterling, 75.13 Yen and 62.10 Euro cents.
Iron Ore futures suggest a 2.5 per cent fall.
Gold has jumped $18.70 to US$1311 an ounce.
Silver was up 8 cents to US$14.57 an ounce.
Oil has dropped $3.09 to US$53.50 a barrel.