Trump lashes out as trade talks resume: ASX poised to open lower

Market Reports

by Rachael Jones

Following weak leads from US markets, the Australian share market looks set to open lower this morning. The trade dispute between the US and China has reared its head again. The two nations resumed negotiations in Shanghai. President Donald Trump lashed out at China on Twitter yesterday saying they were supposed to start buying their agricultural product and that there are no signs that they are doing so.

Local economic news

Consumer Price Index for June 2019 from the Australian Bureau of Statistics.

Markets

Wall Street closed lower yesterday: The Dow Jones Industrial Average lost 0.1 per cent to close at 27,198, the S&P 500 lost 0.3 per cent to close at 3,013 and the NASDAQ lost 0.2 per cent to close at 8,274.

European markets closed lower: London’s FTSE lost 0.5 per cent, Paris lost 1.6 per cent and Frankfurt lost 2.2 per cent.

Asian markets closed higher: Tokyo’s Nikkei added 0.4 per cent, Hong Kong’s Hang Seng gained 0.1 per cent, and China’s Shanghai Composite gained 0.4 per cent.

Taking all of this into equation, the ASX futures are pointing to a 0.4 per cent fall. Yesterday the Australian share market closed 19 higher with the S&P/ASX 200 Index closing 0.3 points higher at 6,845.

Company news 

Lifestyle Communities (ASX:LIC) has revised the year end valuation process for its portfolio of 18 communities and due to new home settlements achieved in FY19 and a 0.5 per cent reduction in the capitalisation rate used by the independent valuers (from 7.5 per cent to 7.0 per cent), there has been a material uplift in the value of the Company’s property portfolio. This will impact the statutory profit result for FY19. Company expects to report: Underlying net profit after tax attributable to shareholders of $40.5 - $41.5 million; and Statutory net profit after tax attributable to shareholders of $54.5 – $55.5 million. New home settlements for FY19 were 337. They will announce its audited FY19 financial results on 14 August 2019. Lifestyle Communities (ASX:LIC) closed 0.3 per cent higher at $6.90

Ex-dividend

Master Income Trust (ASX:MXT) are going ex-dividend today paying 0.77 cents unfranked.

Currencies

One Australian Dollar at 7:30AM was buying 68.75 US cents, 56.61 Pence Sterling, 74.67 Yen and 61.62 Euro cents.

Commodities

Iron Ore futures suggest a 1.5 per cent rise
Gold has gained $10 to US$1,443 an ounce.
Silver has gained $0.15 to US$16.59 an ounce.
Oil has risen by$1.47 to US$58.34 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.