Tech stocks weigh on Wall Street: Aus shares to open higher, RBA decision ahead

Market Reports

by Anna Napoli

Australian shares are set to rise at the open despite a mixed session on Wall Street overnight. US sharemarkets were mixed on Monday with tech stocks falling the most. The likes of Alphabet, Amazon, Facebook and Apple all weighed on the market amid reports that the U.S. government is planning to target a host of big tech companies with an antitrust investigation. Trade worries also weighed on the broader market.

US economic news

Manufacturing activity. fell last month to its slowest pace of growth in 2.5 years. The pace of expansion also disappointed economists polled by Refinitiv.

Local economic news

Investors are waiting for the Reserve Bank to confirm expectations and cut the cash rate by 25 basis points. Treasurer Josh Frydenberg has urged the big four banks to pass on any cuts in full. The quarterly balance of payments is also due from the ABS.


To the figures from around the globe: Wall Street closed mostly lower yesterday: The Dow Jones Industrial Average closed flat (up 0.02 per cent) to 24,820, the S&P 500 fell 0.3 per cent to close at 2744 and the NASDAQ dropped 1.6 per cent to 7333.

European markets closed higher: London’s FTSE added 0.3 per cent, Paris gained 0.7 per cent and Frankfurt rose 0.6 per cent.

Asian markets closed lower,Tokyo’s Nikkei fell 0.9 per cent, Hong Kong’s Hang Seng was down 0.03 per cent and China’s Shanghai Composite lost 0.3 per cent.

Returning home, the SPI futures are up 18 points. Yesterday, the Australian share market closed 76 points (1.2per cent) lower at 6321.

Company news

Mirvac Group (ASX:MGR) has announced that it has entered into a binding agreement with developer, PDG, to acquire 490 completed build-to-rent apartments in Melbourne's CBD. The agreement is n a fund through basis for a total investment amount of $333.5 m (including GST). The agreement is subject to conditions precedent. Shares is Mirvac Group(ASX:MGR) closed 1.98 per cent higher at $3.09 yesterday.


Incitec Pivot Ltd (ASX:IPL) is paying 1.3 cents unfranked


One Australian Dollar at 7:40AM was buying 69.77US cents, 55.11Pence Sterling, 75.38 Yen and 62.06 Euro cents.


Iron Ore futures suggest a 0.6 per cent fall.
Gold has gained $19.10 to US$1330 an ounce.
Silver was up $0.21 to US$14.78 an ounce.
Oil fell $0.65 to US$52.85 a barrel.