Safe haven gold hits 6-year high: ASX set to open lower

Market Reports

by Rachael Jones

Following mixed leads from US markets, the Australian share market looks set to open lower this morning. There was some positive investment in the US as the outlook for global growth was bolstered by the Central Bank moves to ease monetary policy. But the China/US trade war drags on as the Yuan slips, influencing the last few sessions. In the US yields on 10-year Treasuries edged higher after an earlier dip. Some currencies slipped as New Zealand, India and Thailand reported rate cuts.

Markets

Wall Street closed mixed yesterday: The Dow Jones Industrial Average lost 0.1 per cent to close at 26,007, the S&P 500 added 0.1 per cent to close at 2884 and the NASDAQ gained 0.4 per cent to 7863.

European markets closed higher: London’s FTSE added 0.4 per cent, Paris gained 0.6 per cent and Frankfurt was up 0.7 per cent.

Asian markets closed mixed: Tokyo’s Nikkei lost 0.3 per cent, Hong Kong’s Hang Seng was up 0.1 per cent and China’s Shanghai Composite dropped 0.3 per cent.

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

Yesterday, the Australian share market closed 41 points or 0.6 per cent higher at 6519.

Company news

Alliance Aviation Services (ASX:AQZ) announced a record profit before tax result of $32.8 million for the year ended 30 June 2019, an increase of $6.7 million or 25.7 per cent on the previous financial year. Net profit after tax (NPAT) for the same period increased by $4.6 million to $22.7 million (2018: $18.1 million). Throughout the year the company successfully negotiating a number of renewed contracts.
A record number of flight hours were operated during the year utilising up to 38 aircraft up from last year's 33. Shares in Alliance Aviation Services (ASX:AQZ) closed 2.48 per cent lower at $2.75 yesterday.

Companies reporting today

- AGL Energy (ASX:AGL)
- AMP (ASX:AMP)
- Insurance Australia Group (ASX:IAG)
- Mirvac Group (ASX:MGR)

Ex – Dividend

Milton Corporation (ASX:MLT) is paying 10.4 cents fully franked
Rio Tinto (ASX:RIO) is paying $3.08 fully franked

Currencies

One Australian Dollar at 7:40AM was buying 67.62US cents, 55.68Pence Sterling, 71.82 Yen and 60.37 Euro cents.

Commodities

The Iron ore price is down 4.3 per cent to $93.31
Iron Ore futures suggest a 2.3 per cent fall
Gold has added $29.00 to US$151 3an ounce.
Silver has gained $0.68 to US$17.13 an ounce.
Oil has fallen $1.32 to US$52.31 a barrel.