Wall Street falls from record highs after strong jobs report: Aus shares to open lower

Market Reports

by Anna Napoli

Australian shares are poised to open lower after a week of gains following weak leads from Wall Street. US sharemarkets fell from record highs on Friday after the release of solid US jobs data. The figures led traders to rethink their outlook for rate cuts by the Federal Reserve later this month.

US Economic news 

The U.S. Bureau of Labor Statistics reported that nonfarm payrolls in June increased by 224,000 beating the market expectation of 160,000. Meantime, unemployment ticked up to 3.7 per cent in June from 3.6 per cent in May.

Local economic news

Its another busy week for local economic news,  today the ABS releases the survey of “Participation, Job Search and Mobility". On. Tuesday, NAB releases the June survey of business confidence and conditions. On Wednesday we can expect data on “Building Activity” as well as “Construction Work Done” for the March quarter. On Thursday, the ABS releases May data on new lending commitments made by lenders to Aussie consumers and businesses. Also on Thursday, Reserve Bank Deputy Governor, Guy Debelle, delivers a speech. On Friday, the Reserve Bank releases May data on credit and debit card lending and the “Overseas Arrivals & Departures” data is due from the ABS.

Markets

Wall Street closed lower on Friday: The Dow Jones Industrial Average fell 0.2 per cent to close at 26,922, the S&P 500 lost 0.2 per cent to close at 2990 and the NASDAQ dipped 0.1 per cent to 8162.

European markets closed lower on Friday: London’s FTSE fell 0.7 per cent, Paris dropped 0.5 per cent and Frankfurt was down 0.5 per cent.

Asian markets closed mixed on Friday: Tokyo’s Nikkei added 0.2 per cent, Hong Kong’s Hang Seng fell 0.1 per cent while China’s Shanghai Composite gained 0.2 per cent.

Taking all of this into equation, the SPI futures are pointing to 12 points fall. On Friday, the Australian share market closed 33 points (0.5 per cent)higher at 6751.

Company news

Investment fund, Regal (ASX:RF1) has announced since listing on the ASX last month its net asset value (NAV) increased by 2.1 per cent to $2.55 at 30 June 2019. The company says it’s a pleasing result for its first month and that the fund is focused on methodically building out portfolio positions with portfolio construction expected to be completed in the coming months. Shares inRegal Investment Fund(ASX:RF1)closed flat at $2.52 on Friday.

Ex-Div  

Turners Automotive Group (ASX:TRA) is paying 4.73 cents 85 per cent franked

Currencies

One Australian Dollar at 7:40 AM was buying69.82US cents, 55.75 Pence Sterling, 75.71 Yen and 62.20Euro cents.

Commodities

Iron Ore futures suggest a 1.3 per cent fall
Gold has dropped$18.60 to US$1400 an ounce.
Silver was down 31 cents to US$15.00 an ounce.
Oil has added $0.60 to US $57.51 a barrel.