Will US cut rates?: ASX poised to open higher

Market Reports

by Rachael Jones

Following positive leads from US markets, the Australian share market looks set to open higher this morning. US stocks rebounded after the Federal Reserve Bank of New York President John Williams highlighted the need for action should policy makers decide the economy is in trouble. The US dollar fell. On the commodities front, oil dropped over a dollar and gold has risen by over $24 .


Wall Street closed higher yesterday: The Dow Jones Industrial Average gained 0.01 per cent to 27,223, the S&P 500 added 0.36 per cent to close at 2995 and the NASDAQ rose 0.3 per cent to 8207.

European markets closed lower: London’s FTSE lost 0.6 per cent, Paris fell 0.4 per cent and Frankfurt was down 0.9 per cent.

Asian markets closed lower: Tokyo’s Nikkei lost 2 per cent, Hong Kong’s Hang Seng was down 0.5 per cent and China’s Shanghai Composite lost 1 per cent.

Taking all of this into equation, the SPI futures are pointing to a 0.2 per cent rise.

Yesterday, the Australian share market closed 24 points or 0.4 per cent lower at 6649.

Company news 

Village Roadshow (ASX:VRL) announced the appointment of Peter Tonagh as an Independent Non-Executive Director effective from today. He has extensive executive leadership experience including as Chief Executive Officer of News Corp Australia and Foxtel, and interim Chief Executive Officer of REA Group. Prior to that he held roles as Chief Operating Officer of News Corp Australia and Chief Operating Officer and Chief Financial Officer of Foxtel. He is also a former Vice President and Partner of The Boston Consulting Group. He will serve on the VRL Audit and Risk, Remuneration and the Corporate Governance and Nomination Committees. Shares in Village Roadshow (ASX:VRL) closed 1.8per cent lower at $2.70 yesterday.


Euroz (ASX:EZL) is paying 5 cents fully franked


One Australian Dollar at 7:30AM was buying 70.75US cents, 56.37Pence Sterling, 75.9 Yen and 62.74 Euro cents.


Iron Ore futures suggest a 0.7 per cent fall.
Gold has risen $24.10 to US$1447 an ounce.
Silver was up $0.41 to US$16.39 an ounce.
Oil dropped $1.15 to US$55.77 a barrel.

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