Treasury note yield plummets: ASX poised 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. The Dow finished the day higher yesterday. Treasury yields plummeted to levels unseen in years. US investors jumped the safety of government bonds, sending the 30-year Treasury bond yield below 2 per cent for the first time and the 10-year Treasury note yield below 1.5 per cent, a three-year low. Concerns about the prospect of a global recession continue. On the commodities front, oil has dropped and safe haven gold has added.

Markets

Wall Street closed mixed yesterday: The Dow Jones Industrial Average added 0.4 per cent to close at 25,579, the S&P 500 closed 0.3 per cent higher at 2848 and the NASDAQ fell 0.1 per cent to 7767.

European markets closed lower: London’s FTSE fell 1.1 per cent, Paris lost 0.3 per cent and Frankfurt was down 0.7 per cent.

Asian markets closed mixed: Tokyo’s Nikkei fell 1.2per cent, Hong Kong’s Hang Seng was up 0.8 per cent and China’s Shanghai Composite gained 0.3 per cent.

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

Yesterday, the Australian share market closed 188 points or 2.9 per cent lower at 6408.

Company news

Oil Search (ASX:OSH) released a press release yesterday from Papua New Guinea's Minister for Petroleum regarding the Papua LNG Project. He has dispatched a team to Singapore to renegotiate its Papua LNG agreement with French oil major Total SA. They will return early next week with a report. The Papua LNG project is a joint venture between Total, Exxon Mobil Corp and Oil Search (ASX:OSH). Shares in Oil Search (ASX:OSH) closed 6.7per cent lower at $6.55 yesterday.

Reporting Season

- Baby Bunting Group (ASX:BBN)
- Charter Hall Retail REIT (ASX:CQR)
- Cochlear Ltd (ASX:COH)
- Domain Holdings Australia (ASX:DHG)
- Healius Ltd (ASX:HLS)
- Newcrest Mining (ASX:NCM)
- Star Entertainment Group Ltd (ASX:SGR)

Ex – Dividend

Ansell (ASX:ANN) is paying 38.18 cents unfranked
Dicker Data (ASX:DDR) is paying 5 cents fully franked
Magellan Financial Group (ASX:MFG) is paying 111.4 cents 75 per cent franked

Currencies

One Australian Dollar at 7:40AM was buying 67.76US cents, 56.08Pence Sterling, 71.89 Yen and 61.01 Euro cents.

Commodities

Iron Ore futures suggest a 1.9 per cent fall
Gold has added $6.10 to US$1534 an ounce.
Silver was down $0.04 cents to US$17.24 an ounce.
Oil has dropped $0.62 to US$54.63 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.