US climbs on delay in Mexican tariffs: ASX set to open higher

Market Reports

by Rachael Jones

The Australian share market is expected to open higher this morning following on from positive leads from Wall Street. We saw US stocks climb as President Donald Trump decided to delay imposing tariffs on Mexico. Still in the US, treasuries rose on speculation that major central banks will keep a dovish stance as the trade war jeopardizes growth. The European Central Bank ruled out raising interest rates in the next year and even opened the door to cutting them or buying more bonds. The Euro rallied.

Local economic news 

The AiG will release the performance of construction for May, and the Australian Bureau of Statistics are set to release the figures for lending to households and businesses for April.


Wall Street closed higher yesterday: The Dow Jones Industrial Average gained 0.7 per cent to 25,721, the S&P 500 added 0.6 per cent to close at 2843 and the NASDAQ rose 0.5 per cent to 7616.

European markets closed mixed: London’s FTSE added 0.6 per cent, Paris fell 0.3 per cent and Frankfurt shed 0.2 per cent.

Asian markets closed mixed, Tokyo’s Nikkei fell 0.01 per cent, Hong Kong’s Hang Seng was up 0.3 per cent and China’s Shanghai Composite lost 1.17 per cent.

Taking all of this into equation, the SPI futures are up 28 points. Yesterday, the Australian share market closed 24 points or 0.4 per cent higher at 6383.

Company news

Infigen Energy (ASX:IFN) is pleased to see the Smithfield Open Cycle Gas Turbine (OCGT) facility has been re-rated from 109MW to 123MW by the Australian Energy Market Operator. Infigen has paid the additional $14 million of cash ($1 million per MW of capacity re-rating), per the acquisition terms disclosed to the market on 23 May 2019. Consequently, the total purchase price for the Smithfield OCGT facility is $74 million in cash. Shares in Infigen Energy (ASX:IFN) closed flat at $0.46 yesterday.


One Australian Dollar at 7:40AM was buying 69.78 US cents, 54.99 Pence Sterling, 75.64 Yen and 61.90 Euro cents.


Iron Ore futures suggest a 0.8 per cent fall.
Gold has gained almost $6.00 to US$1340 an ounce.
Silver was up $0.09 to US$14.88 an ounce.
Oil added $1.50 to US$53.18 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.