US Manufacturing Index signals contraction: ASX set to open lower

Market Reports

by Rachael Jones

Following negative leads from US markets, the Australian share market looks set to open lower this morning after US stocks fell as an American manufacturing report signaled contraction for the first time in three years. Over in the UK, Sterling fell against the US dollar only to see a slight rally after touching its lowest level since 2016. There's speculation Prime Minister Boris Johnson could be planning a general election in the coming months. Brexit chaos continues as MPs voted to take control of the House of Commons allowing them to block a no-deal Brexit. On the commodities front, oil lost as safe haven gold jumped $27.

Local economic news 

We can expect to see the second quarter GDP and AiG will release the performance of services for August.

Markets

Wall Street closed lower yesterday: The Dow Jones Industrial Average dropped 1.1 per cent to close at 26,118, the S&P 500 closed 0.7 per cent lower at 2906 and the NASDAQ fell 1.1 per cent to 7874.

European markets closed lower: Paris dropped 0.2 per cent and Frankfurt fell 0.5 per cent while London’s FTSE dipped 0.4 per cent.

Asian markets closed mixed: Tokyo’s Nikkei closed almost flat, Hong Kong’s Hang Seng was down 0.4 per cent and China’s Shanghai Composite closed 0.2 per cent higher.

Taking all of this into equation, the SPI futures are pointing to a 0.6 per cent fall.

Yesterday, the Australian share market closed 6 points or 0.1 per cent lower at 6573.

Company news 

Following months of uncertainty Oil Search (ASX:OSH) released a statement from the Papua New Guinea Government to say it has now cleared the Papua LNG deal with French oil major Total SA. However, the Minister for Petroleum Kerenga Kua says, this Government is committed to doing things differently from the past. The billion liquefied natural gas project was facing uncertainty after the ousting of the country's prime minister. Papua LNG project is a joint venture between Total, Oil Search and Exxon Mobil Corp. Shares in Oil Search (ASX:OSH) closed 2.14 per cent higher at $6.68 yesterday.

Ex – Dividend

AUB Group Ltd (ASX:AUB) is paying 32.5 cents fully franked
Clinuvel Pharmaceuticals Limited (ASX:CUV) is paying 2.5 cents unfranked
Ellerston Asian Investments Ltd (ASX:EAI) is paying 1.5 cents fully franked
Ellerston Global Investments Ltd (ASX:EGI) is paying 1.5 cents fully franked
Estia Health Ltd (ASX:EHE) is paying 7.8 cents fully franked
Event Hospitality and Entertainment Ltd (ASX:EVT) is paying 31 cents fully franked
Finbar Group Limited (ASX:FRI) is paying 3 cents fully franked
Globe International Limited (ASX:GLB) is paying 7 cents unfranked
Iluka Resources (ASX:ILU) is paying 5 cents fully franked
IRESS Limited (ASX:IRE) is paying 16 cents 10 per cent franked
InvoCare Limited (ASX:IVC) is paying 17.5 cents fully franked
Lifestyle Communities Limited (ASX:LIC) is paying 3 cents fully franked
Link Administration Holdings Ltd (ASX:LNK) is paying 12.5 cents fully franked
MACA Limited (ASX:MLD) is paying 2.5 cents fully franked
Medibank Private Ltd (ASX:MPL) is paying 9.9 cents fully franked
Mineral Commodities Limited (ASX:MRC) is paying 0.6 cents 15 per cent franked
PM Capital Global Opportunities Fund Ltd (ASX:PGF) is paying 2 cents fully franked
Perpetual Limited (ASX:PPT) is paying 125 cents fully franked
QANTM Intellectual Property Ltd (ASX:QIP) is paying 4.8 cents fully franked
Sunland Group Ltd (ASX:SDG) is paying 4 cents fully franked
Salmat Limited (ASX:SLM) is paying 5 cents fully franked
Treasury Wine Estates Ltd (ASX:TWE) is paying 20 cents fully franked

Currencies

One Australian Dollar at 7:40AM was buying 67.57US cents, 55.92Pence Sterling, 71.59 Yen and 61.59 Euro cents.

Commodities

Iron Ore futures suggest a 0.6 per cent gain.
Gold has gained $27 to US$1556 an ounce.
Silver has added $1.02 cents to US$19.36 an ounce.
Oil has lost $0.88 to US$53.93 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.