US stocks steady after sell off: ASX 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. China moved to stablise its currency as the trade war escalated with the US. In New York some shares clawed back after recent losses. Meanwhile, China’s exit from US agriculture is a devastating blow to an already struggling sector. American farmers are losing one of their biggest customers. It could be a tough year for crops and commodity prices. On the commodities front, gold added and oil lost.

Local economic news

Australian Industry Group will release figures for construction performance for July

Markets

Wall Street closed higher yesterday: The Dow Jones Industrial Average recovered 1.2 per cent to end the session at 26,030, the S&P 500 added 1.3 per cent to close at 2882 and the NASDAQ gained 1.4 per cent to 7833.

European markets closed lower: London’s FTSE fell 0.7 per cent, Paris lost 0.1 per cent and Frankfurt was down 0.8 per cent.

Asian markets closed lower: Tokyo’s Nikkei lost 0.7 per cent, Hong Kong’s Hang Seng was also down 0.7 per cent and China’s Shanghai Composite dropped 1.6 per cent.

Taking all of this into equation, the SPI futures are pointing to a 0.7 per cent gain.

Yesterday, the Australian share market closed 162 points or 2.4 per cent lower at 6478.

Company news

Tilt Renewables (ASX:TLT) reports that Snowtown Wind Farm Stage 2, a wholly- owned subsidiary of Tilt Renewables, has been served with court proceedings on behalf of the Australian Energy Regulator (AER) in relation to their investigations into the black system event which occurred in South Australia on 28 September 2016. Snowtown 2 Wind Farm believes it acted in good faith and in accordance with the applicable National Electricity Rules, and the company will continue to engage with the Energy Regulator in an endeavour to resolve this matter. Shares in Tilt Renewables (ASX:TLT) closed flat $2.45 on Monday.

Reporting season

Commonwealth Bank of Australia (ASX:CBA), Suncorp (ASX:SUN) and Transurban Group (ASX:TCL)

Currencies

One Australian Dollar at 7:45AM was buying 67.60US cents, 55.56Pence Sterling, 71.97 Yen and 60.35 Euro cents.

Commodities

Iron Ore futures suggest a 0.4 per cent fall
Gold has added $10.00 to US$1487 an ounce.
Silver has gained $0.06 to US$16.45 an ounce.
Oil has fallen $1.23 to US$53.46 a barrel.