Fed talk sends US stocks lower: ASX poised to open lower

Market Reports

by Rachael Jones

Following negative, leads from US markets, the Australian share market looks set to open lower this morning. US stocks fell the most in more than three weeks as Federal Reserve Chairman Jerome Powell warned of risks to the economy have increased reiterating the case for lower interest rates. Meanwhile all eyes will be on the G20 summit in Japan later this week as Trump and Xi Jinping meet – a decision on the next round of tariffs for China is set to be announced. On the commodities front, oil has gained 87 cents and gold has keeps rising.

Local economic news 

The ABS will release Engineering Construction Activity, for March 2019.

Markets

Wall Street closed lower yesterday: The Dow Jones Industrial Average closed 0.67 per cent lower at 26,548, the S&P 500 dropped almost 1per cent to close at 2917 and the NASDAQ lost 1.5 per cent lower at7885.

European markets closed mixed: London’s FTSE added 0.1 per cent, Paris fell 0.1 per cent and Frankfurt was down 0.4 per cent.

Asian markets closed lower, Tokyo’s Nikkei fell 0.4 per cent, Hong Kong’s Hang Seng was down 1.2 per cent and China’s Shanghai Composite fell 0.9 per cent.

Taking all of this into equation, the SPI futures are down 36 points. Yesterday, the Australian share market closed 7 points or 0.1 per cent lower at 6658.

Company news

NetLinkz (ASX:NET) has completed successful Lab testing of Cyber Security SDWAN VIN Software with US Federal Government IT solutions provider Blue Tech. Blue Tech found “No issues with connectivity over the VINs whatsoever”. Blue Tech has now requested a reseller agreement from Netlinkz outlining commercial terms and will commence distribution of the product via its US Federal customer base. Blue Tech is a woman owned small business and a prime contract holder of many of the US government's leading IT procurement contract vehicles. Shares in NetLinkz (ASX:NET) closed 8.33 per cent lower at $0.11.

Currencies

One Australian Dollar at 7:40AM was buying 69.61 US cents, 54.88 Pence Sterling, 74.60 Yen and 61.23 Euro cents.

Commodities

Iron Ore futures suggest a 1.7 per cent fall.
Gold has added $8.50 to US$1427 an ounce.
Silver was down $0.04 to US$15.43 an ounce.
Oil gained $0.87 to US$58.77 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.