Powell sends rate cut signal: ASX set to open higher

Market Reports

by Rachael Jones

Australian shares are set to open higher this morning as US stocks rose to all time highs. US Federal Reserve Chairman Jerome Powell signaled a willingness to lower rates this month due to a slowing global economy and trade issues. On the commodities front, oil has added and gold rallied. The spot price of iron ore edged lower.

Local economic news 

We can expect to see the figures for Lending to households and businesses for May 2019 from the Australian Bureau of Statistics.


Wall Street closed higher yesterday: The Dow Jones Industrial Average added 0.3 per cent to 26,860, the S&P 500 gained 0.5 per cent to close at 2993 and the NASDAQ increased 0.8 per cent to 8203.

European markets closed lower: London’s FTSE fell 0.1 per cent, Paris also lost 0.1 per cent and Frankfurt was down 0.5 per cent.

Asian markets closed mixed,Tokyo’s Nikkei fell 0.2 per cent, Hong Kong’s Hang Seng was up 0.3 per cent and China’s Shanghai Composite dropped 0.4 per cent.

Taking all of this into equation, the SPI futures are up 5 points. Yesterday, the Australian share market closed 24 points or 0.4 per cent higher at 6690.

Company news 

The Monash IVF Group (AX:MVF) announced the acquisition of Fertility Solutions, a Queensland based provider of fertility services. Fertility Solutions was established in 2007 and has two clinics located on the Sunshine Coast and Bundaberg. The business brings six fertility specialists who have worked together for several years into the Monash IVF clinician network. Monash IVF is acquiring certain assets, liabilities and contracts of Fertility Solutions for initial cash consideration of $2.1 million on a debt free basis, with the potential of additional earn out payments over a four year period to 30 June 2023. The business currently performs in excess of 300 stimulated cycles per annum with revenues of circa $3 million. Shares in Monash IVF Group (AX:MVF) closed 4.49 per cent higher at $1.40.


One Australian Dollar at 7:40AM was buying 69.63 US cents, 55.68 Pence Sterling, 75.49 Yen and 61.88 Euro cents.


Iron Ore futures suggest a 0.2 per cent fall.
Gold has risen $20.50 to US$1421 an ounce.
Silver was up $0.12 to US$15.27 an ounce.
Oil added $2.17 to US$59.88 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.