Tech drags down Wall Street: Aus shares to open flat

Market Reports

by Anna Napoli

Australian shares are set for a subdued start after US stocks pulled back on Monday. Apple shares dragged down the broader tech sector after an analyst downgraded the stock to sell from neutral. Wall Street is also awaiting the testimony from Federal Reserve Chair Jerome Powell on Wednesday. Powell’s testimony comes after a stronger-than-expected jobs report raised questions about whether the Fed will cut rates later this month.
 Meantime, the recovery in the spot price of iron ore may help boost our local market today. Iron ore tumbled last Friday when reports surfaced Beijing was preparing to crackdown on soaring prices. But iron futures staged a comeback yesterday bolstered by expectations of strong demand.

Local economic news

Today we can expect the NAB June survey of business confidence and conditions.

Markets

To the figures from around the globe:Wall Street closed lower yesterday: The Dow Jones Industrial Average lost 0.4 per cent to 26,806, the S&P 500 fell 0.5 per cent to close at 2976 and the NASDAQ dropped 0.8 per cent to 8098.

European markets closed lower: London’s FTSE fell 0.1 per cent, Paris lost 0.1 per cent and Frankfurt was down 0.2 per cent.

Asian markets closed lower,Tokyo’s Nikkei fell almost 1 per cent, Hong Kong’s Hang Seng was down 1.5 per cent and China’s Shanghai Composite dropped 2.6 per cent.

Returning home, the SPI futures are up 1 point. Yesterday, the Australian share market closed 79 points or 1.2 per cent lower at 6672.

Company news

Huon Aquaculture Group (ASX:HUO) has announced salmon grown at its Whale Point Salmon Nursery have achieved weights in excess of 1 kg per fish, representing the biggest on-land hatchery-grown salmon in the southern hemisphere. The 1400 tonne Whale Point facility represents a capital investment of $43m and the biggest step change in core product development and process for the salmon industry since the implementation of Huon’s offshore farming. The company is confident of delivering delivering production volumes of at least 25,000 tonnes in FY2020. Shares in Huon Aquaculture Group(ASX:HUO) closed 0.9 per cent higher at $4.74.

Ex-Div

Collins Foods Ltd (ASX:CKF) is paying 10.5 cents fully franked.
Metcash Limited (ASX:MTS) is paying 7 cents fully franked.

Currencies

One Australian Dollar at 7:40AM was buying 69.75 US cents, 55.72 Pence Sterling, 75.82 Yen and 62.20 Euro cents.

Commodities

Iron Ore futures suggest a 5.8 per cent gain.
Gold has fallen $2.50 to US$1398 an ounce.
Silver was up $0.05 to US$15.05 an ounce.
Oil added $0.06 t oUS$57.57 a barrel.