Gold shoots up as oil drops: ASX set to open lower

Market Reports

by Rachael Jones

Following positive leads from US markets, the Australian share market looks set to open lower. US stocks edged higher to a fresh record. The S&P 500 swung between gains and losses before rising into the close for a second straight all-time high. Tesla shares surged yesterday after they set new production and delivery records during the second quarter, beating analysts expectations. The Euro erased gains as European Union leaders named France's Christine Lagarde as the new head of the European Central Bank. On the commodities front, oil has saw a drop and gold rallied – over $30.


Wall Street closed higher yesterday: The Dow Jones Industrial Average closed 0.3 per cent higher at 26,787, the S&P 500 added 0.3 per cent to close at 2973 and the NASDAQ gained 0.2 per cent lower at 8110.

European markets closed higher: London’s FTSE added 0.8 per cent, Paris gained 0.2 per cent and Frankfurt was up 0.04 per cent.

Asian markets closed mixed, Tokyo’s Nikkei added 0.1 per cent, Hong Kong’s Hang Seng was up 1.2 per cent and China’s Shanghai Composite fell 0.03 per cent.

Taking all of this into equation, the SPI futures are down 11 points. Yesterday, the Australian share market closed 5 points or 0.1 per cent higher at 6653.

Local economic news

The Australian Bureau of Statistics will release:-

International Trade in Goods and Services, May 2019.

Building Approvals, May 2019.

Company news 

Back in April this year, A2B Australia (ASX:A2B) entered into an agreement with Regent Taxis to acquire the business operations and various assets of Gold Coast Cabs. The transaction was subject to ACCC approval and the support of Regent’s Shareholders. A2B can now confirm that it has completed this acquisition. The $2.5 million transaction immediately increases subscription numbers on A2B’s Taxi network and once fully integrated Gold Coast Cabs will contribute $5 million revenue and $1 million EBITDA on an annualised basis. Shares in A2B Australia (ASX:A2B) closed 1.12 per cent higher at $1.80.


HGL Limited (ASX:HNG) is paying 0.75 cents fully franked.
Unibail-Rodamco-Westfield (ASX:URW) is paying 30.40 cents unfranked.


One Australian Dollar at 7:40AM was buying 69.95 US cents, 55.55 Pence Sterling, 75.48 Yen and 61.97 Euro cents.


Iron Ore futures suggest a 1.6 per cent gain.
Gold has risen $32.20 to US$1422 an ounce.
Silver was up $0.15 to US$15.35 an ounce.
Oil shed $2.77 to US$56.32 a barrel.