US stocks fall on Powell’s move: ASX poised to open lower

Market Reports

by Rachael Jones

Following weak leads from US markets, the Australian share market is set to open down. As was expected by economists and investors the Federal Open Market Committee cut US interest rates by 25 basis points to the range of 2 per cent to 2.25 per cent. It's the first interest-rate cut in over a decade. US equities fell the most in two months, while two-year Treasury yields rose. Federal Chairman Jerome Powell calls the cut a “midcycle adjustment”.

Local economic news 

ABS, International Trade Price Indexes, June 2019. AiG PMI July, CoreLogic, Dwelling prices July

Markets

Wall Street closed lower yesterday: The Dow Jones Industrial Average lost 1.2 per cent to 26,864, the S&P 500 fell 1.1 per cent to close at 2980 and the NASDAQ dropped 1.2 per cent to 8175.

European markets closed mixed: London’s FTSE lost 0.8 per cent, Paris added 0.1 per cent and Frankfurt was up 0.3 per cent.

Asian markets closed lower:Tokyo’s Nikkei fell 0.9 per cent, Hong Kong’s Hang Seng was down 1.3 per cent and China’s Shanghai Composite dropped 0.7 per cent.

¬Taking all of this into equation, the SPI futures arepointing to a 0.4 per cent fall.

Yesterday, the Australian share market closed 33 points or 0.5 per cent lower at 6813..

Company news

Saracen Mineral Holdings (ASX:SAR) says its takeover bid for Bligh Resources (ASX:BGH) is unconditional. Acceptances received under the Takeover Bid represent 91.80 per cent of the entire issued share capital of Bligh. Shareholders who have accepted the Takeover Bid will be paid the Takeover Bid consideration of 0.0369 fully paid ordinary shares in Saracen for every one fully paid ordinary share on issue in Bligh by Monday, 5 August 2019. As Saracen has received acceptances for more than 90 per cent of the fully paid ordinary shares on issue in Bligh, they may now compulsorily acquire the outstanding fully paid ordinary shares on issue in Bligh. Shares in Saracen Mineral Holdings (ASX:SAR) closed 1.45per cent higher at $4.19 yesterday.

Reporting season 

Mining giant Rio Tinto (ASX:RIO) to report today

Ex-dividends

AMCIL (ASX:AMH) is paying 3.5 cents fully franked
NB Global Corporate Income Trust (ASX:NBI) is paying 0.8991 cents unfranked

Currencies

One Australian Dollar at 7:40AM was buying 68.44US cents, 56.31Pence Sterling, 74.43 Yen and 61.80 Euro cents.

Commodities

Iron Ore futures suggest a 2.5 per cent drop
Gold has dropped by $15.70 to US$1426 an ounce.
Silver has fallen $0.28 to US$16.28 an ounce.
Oil has fallen $0.16 to US$57.89 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.