Trump on Fed: ‘No guts’ after small interest rate cut: ASX set to open slightly higher

Market Reports

by Rachael Jones

Following weak leads from US markets, the Australian share market looks set to open slightly higher this morning. The Federal Reserve cut interest rates by a quarter of a percentage point for the second time this year. Traders were left disappointed after the Fed failed to signal it will cut rates again this year. President Donald Trump says the Fed and its chairman, Jerome Powell, have “no ‘guts,’ no sense, no vision!” He complained that the current interest levels put the US at an economic disadvantage to countries with lower rates. On the commodities front, oil continues to fall and gold has dropped.


Wall Street closed mixed yesterday: The Dow Jones Industrial Average gained 0.1per cent to close at 27,147, the S&P 500 closed almost flat at 3007 and the NASDAQ fell 0.1 per cent to 8177.

European markets closed mixed: London’s FTSE fell 0.1 per cent, Paris added 0.1 per cent and Frankfurt gained 0.1 per cent.

Asian markets closed mixed: Tokyo’s Nikkei fell 0.2 per cent, Hong Kong’s Hang Seng dipped 0.1 per cent and China’s Shanghai Composite added 0.3 per cent.

Taking all of this into equation, the SPI futures are pointing to a 0.14 per cent gain.

Yesterday, the Australian share market closed 14 points or 0.2 per cent lower at 6682.

Local economic news 

ABS Labour force August at 11.30am AEST 

Company news

ELMO Software (ASX:ELO) is to undertake a fully underwritten placement of $55 million at an offer price of $6.00 per share. They will also conduct a non-underwritten share purchase plan offer to existing eligible shareholders capped at $5 million. ELMO intends to use the proceeds from the Placement and SPP Offer to invest in sales and marketing, research and development as well as client services. Alongside the Placement, the Company’s founders and largest pre-IPO seed capital investor have agreed to sell an aggregate of approximately 3.3 million shares to investors worth approximately $20 million at the same price as the Placement. During FY19, ELMO experienced strong growth with statutory revenue up 51 per cent. Shares in ELMO Software (ASX:ELO) closed 1.29 per cent lower at $6.52 yesterday.

Ex – Dividend

5G Networks Limited (ASX:5GN) is paying 1 cent fully franked
Apiam Animal Health (ASX:AHX) is paying 0.8 cents fully franked
Clime Investment (ASX:CIW) is paying 1.5 cents fully franked
Cochlear Limited (ASX:COH) is paying 175 cents fully franked
Crown Resorts Ltd (ASX:CWN) is paying 30 cents 25 per cent franked
Embelton Limited (ASX:EMB) is paying 20 cents fully franked
Kelly Partners Group (ASX:KPG) is paying 1.21 cents fully franked
Pinnacle Investment (ASX:PNI) is paying 9.3 cents fully franked
QMS Media Limited (ASX:QMS) is paying 1.2 cents fully franked
Sigma Health Ltd (ASX:SIG) is paying 1 cent fully franked
Spark New Zealand (ASX:SPK) is paying 11.385 cents unfranked
Swick Mining Services Ltd (ASX:SWK) is paying 0.6 cents fully franked


One Australian Dollar at 7:40AM was buying 68.31 US cents, 54.77 Pence Sterling, 74.08 Yen and 61.92 Euro cents.


Iron Ore futures suggest a 2.6per cent fall.
Gold has lost $12.10 to US$1501 an ounce.
Silver has dropped $0.32 to US$17.82 an ounce.
Oil has fallen $0.90 to US$58.20 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.