The Australian share market futures are suggesting a rise of 12 points or 0.2 per cent, after the local share market closed at a new 11.5 year high yesterday, after we rose 1.6 per cent, extending the winning streak to five days.
Yesterday, the Australian share market closed 102 points higher at 6,546.
However, on Wall Street, we saw the Dow jones snap its six day winning streak with the other major US indices also closing marginally lower, after they have all made strong gains in June.
US economic news
Underlying US underlying producer prices rose strongly in May for the second straight month, with the producer prices rising up 0.1 per cent (as expected), after gaining 0.2 per cent in April according to the Labor Department. One of the biggest contributing factors was the 10 per cent surge in hotel accommodation prices in May, the biggest rise since April 2009, while food prices fell.
The report supports Federal Reserve’s view that the recent weak inflation readings are probably only short-term. Fed policymakers are set to meet on June 18-19 with financial markets pricing in at least two interest rate cuts, by the end of 2019.
Local economic news
Australian Bureau of Statistics (ABS) releases April data on overseas arrivals and departures. Over the year to March, tourist arrivals are down by 0.8 per cent, that’s the lowest annual rate in 7.5 years.
The Reserve Bank will release the credit and debit card data for April.
RBA Assistant Governors Luci Ellis and Christopher Kent will give speeches in Melbourne with Dr. Ellis’ speech titled “Watching the Invisibles” at The Freebairn Lecture in Public Policy.
Wall Street closed weaker on Tuesday: The Dow Jones Industrial Average lost 0.1 per cent to 26,049, the S&P 500 fell 0.03 per cent to close at 2,886 and the NASDAQ closed 0.01 per cent lower at 7,823.
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 higher: Tokyo’s Nikkei added 0.3 per cent, Hong Kong’s Hang Seng was up 0.8 per cent and China’s Shanghai Composite gained 2.6 per cent.
Suncorp (ASX:SUN) advised its acting CEO, Steve Johnston will get an increased pay packet of $1,300,000 per annum, up from the previous $1,000,000 salary. Steve was appointed as interim CEO, stepping up from his Group CFO role after the outgoing CEO and Managing Director Michael Cameron advised he will be stepping down from the helm after four years in the hot seat. Michael Cameron made the announcement about two weeks ago (on 27 May 2019) and the increased pay will remain in place until a permanent CEO and MD is appointed. Shares in Suncorp Group (ASX:SUN) closed 0.91 per cent higher at $13.32 yesterday. Year-to-date its shares are 5.5 per cent year, while year-on-year its shares are 4.7 per cent lower amid the pressure from the banking Royal Commission.
One Australian Dollar at 7:30 AM was buying 69.63 US cents, 54.77 Pence Sterling, 75.60 Yen and 61.49 Euro cents.
Iron Ore futures suggest a 3.2 per cent gain.
Gold has added $1.40 to US$1331 an ounce.
Silver was up $0.09 to US$14.72 an ounce.
Oil dropped $0.21 to US$53.05 a barrel.