Bond yields fall: ASX set to open lower

Market Reports

by Rachael Jones

The Australian share market looks set to open lower as US futures edged higher. There were thin trading volumes globally due to the US market being closed for Independence Day. European shares edged higher. Yesterday, the yield on the 10-year German bund, often a safe haven for investors, was down at -0.398 per cent. Meanwhile, French 10-year bond yields had fallen to -0.12 per cent. Gold slipped but stayed above $1,400.

Local economic news

AiG performance of construction June

Markets

Wall Street was closed yesterday for Independence Day holiday.

European markets closed mixed: London’s FTSE fell 0.1 per cent, Paris gained 0.03 per cent and Frankfurt was up 0.1 per cent.

Asian markets closed mixed, Tokyo’s Nikkei added 0.3 per cent, Hong Kong’s Hang Seng was down 0.2 per cent and China’s Shanghai Composite lost 0.3 per cent.

Taking all of this into equation, the SPI futures are down 2 points. Yesterday, the Australian share market closed 33 points or 0.5 per cent higher at 6718

Company news 

The ACCC has granted interim authorisation for Virgin Australia (ASX:VAH) to cooperate with Virgin Atlantic on flights between Australia and the United Kingdom/Ireland, via Hong Kong, Los Angeles and any other future mutual connecting points. While the two airlines are separate businesses, they already have a codeshare arrangement which allows them to market flights on planes flown by the other. Authorisation will allow the two airlines to coordinate on a wide range of matters such as prices, inventory, and marketing strategies. Shares in Virgin Australia (ASX:VAH) closed 1.3 per cent higher at $0.16.

Currencies

One Australian Dollar at 7:40AM was buying 70.24 US cents, 55.86 Pence Sterling, 75.74 Yen and 62.25 Euro cents.

Commodities

Iron Ore futures suggest a 0.9 per cent fall.
Gold has fallen $2.90 to US$1418 an ounce.
Silver was down $0.02 to US$15.32 an ounce.
Oil dropped $0.54 to US$56.80 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.