Wall St posts solid gains on trade war resolution hopes: Aus shares to open higher

Market Reports

by Anna Napoli

Australian shares look set to rise on the first day of the new financial year bolstered by news China and the US will restart talks aimed at resolving an ongoing trade dispute. Wall Street closed higher on Friday stocks were boosted by bank shares, and investors' hopes of a resolution to the trade war. J.P. Morgan Chase jumped 2.7 per cent while Citigroup, Bank of America, Goldman Sachs and Wells Fargo all closed more than 2 per cent higher. The gains come after they received the Fed’s tick of approval to boost dividends and share repurchase programs.

Local economic news

The week kicks off today with the release of manufacturing surveys from AiGroup and CBA, CoreLogic’s home prices data and the Melbourne Institute’s inflation gauge are also due. On Tuesday the Reserve Bank meets and a number of economists believe the Board will cut the cash rate by a further 25 basis points to 1 per cent. On Wednesday, both AiGroup and the CBA release June surveys on services activity and the Federal Chamber of Automotive Industries issues the June data on new vehicle sales. Also on Wednesday council approvals to build new homes are released together with international trade data. On Thursday, retail trade and job vacancies figures are both due. On Friday, AiGroup’s Performance of Construction Index will round-out a very busy week.

Markets

To the figures from around the globe: Wall Street closed higher on Friday: The Dow Jones Industrial Average added 0.3 per cent to close at 26,600, the S&P 500 gained 0.6 per cent to close at 2942 and the NASDAQ rose 0.5 per cent to 8006.

European markets closed higher on Friday: London’s FTSE added 0.3 per cent, Paris gained 0.8 per cent and Frankfurt was up 1.04 per cent.

Asian markets closed lower on Friday: Tokyo’s Nikkei lost 0.3 per cent, Hong Kong’s Hang Seng fell also 0.3 per cent while China’s Shanghai Composite dropped 0.6 per cent.

Returning home, the SPI futures are pointing to a gain of 18 points. On Friday, the Australian share market closed 48 points (0.7 per cent) lower at 6619.

Company news

Online real estate company Domain Holdings (ASX:DHG) has announced the completion of the sale of its 50 per cent interest in utilities comparison and connection service Compare & Connect to its joint venture partner TW Australia Holdings 2. Following the sale Domain will have a marketing services agreement with Compare & Connect which includes both guaranteed and referral fees. Shares in Domain Holdings Australia (ASX:DHG) closed 0.63 per cent lower at $3.18 on Friday.

Ex-Div

Eildon Capital Ltd (ASX:EDC) is paying 1.925 cents fully franked
Magellan Global Trust (ASX:MGG) is paying 3 cents unfranked
NB Global Corporate Income Trust (ASX:NBI) is paying 2.623 cents unfranked
Vitalharvest Freehold Trust (ASX:VTH) is paying 0.5 cents unfranked

Currencies

One Australian Dollar at 7:40 AM was buying 70.34 US cents, 55.43 Pence Sterling, 76.13 Yen and 61.89 Euro cents.

Commodities

Iron Ore has gained 0.4 per cent to at US$118.47
Iron Ore futures suggest a 0.7 per cent gain.
Gold has added $1.70 to US$1414. an ounce.
Silver was up 5 cents to US$15.34 an ounce.
Oil has lost $0.96 to US$58.47 a barrel.