Dow plunges, Europe stocks fall: ASX set to open lower

Market Reports

by Rachael Jones

Following a shocking plunge in US markets yesterday, the Australian share market looks set to open lower. The Dow Jones Industrial Average had its worst performance of 2019. Bank stocks led the declines with the financials sector down more than 10 per cent from a recent high. President Donald Trump tweeted that the US was winning against China and he blamed the Fed for the market turmoil. In raising interest rates four times last year he tweeted that is was "Too much, Too fast". European markets also fell. On the commodities front, the price of oil has dropped and gold, the safe haven has risen.

Local economic news

The Australian Bureau of Statistics will release figures for July's Labour Force.

Markets

Wall Street closed lower yesterday: The Dow Jones Industrial Average dropped 3.1 per cent to close at 25,479, the S&P 500 closed 2.9 per cent lower at 2841 and the NASDAQ fell over 3 per cent to 7774.

European markets closed lower: London’s FTSE fell 1.4 per cent, Paris lost 2.1 per cent and Frankfurt was down 2.2 per cent.

Asian markets closed higher: Tokyo’s Nikkei added almost 1per cent, Hong Kong’s Hang Seng was up 0.1 per cent and China’s Shanghai Composite gained 0.4 per cent.

Taking all of this into equation, the SPI futures are pointing to a 2.1 per cent fall.

Yesterday, the Australian share market closed 27 points or 0.4 per cent higher at 6596.

Company news 

Elders (ASX:ELD) has refinanced its debt facilities to deliver extended tenure, improved terms and commitment for working capital facilities for Australian Independent Rural Retailers (AIRR).
The tenor of the new facilities ranges between 12 and 36 months. The re-finance package provides a $40 million commitment on a certain funds basis for for AIRR. And an uncommitted $50 million to finance acquisitions, subject to financier consent, with a committed $30 million ‘bolt-on’ acquisition tranche to fund strategic expansion over the next 24- months. Shares in Elders (ASX:ELD) closed 0.15 per cent higher at $6.73 yesterday.

Reporting Season

- ASX (ASX:ASX)
- Blackmores (ASX:BKL)
- Evolution Mining (ASX:EVN)
- Super Retail Group (ASX:SUL)
- Telstra Corp (ASX:TLS)
- Whitehaven Coal (ASX:WHC)

Ex – Dividend

G.U.D. Holdings (ASX:GUD) is paying 31 cents fully franked
Plato Inc Max (ASX:PL8) is paying 0.5 cents fully franked

Currencies

One Australian Dollar at 7:40AM was buying 67.48US cents, 55.98Pence Sterling, 71.38 Yen and 60.58 Euro cents.

Commodities

The Iron Ore Price is up 1.6 per cent at $90.72
Iron Ore futures suggest a 0.3 per cent gain
Gold has added $13.20 to US$1527 an ounce.
Silver was up $0.21 cents to US$17.19 an ounce.
Oil has dropped $1.67 to US$54.91 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.