The Australian share market looks set to open higher following strong leads from the US. This comes despite some negative global economic headwinds. Overnight the OECD released an interim economic outlook projecting the weakest annual growth rates since the financial crisis. They expect the global economy to grow by 2.9 per cent in 2019 and 3 per cent in 2020. This comes after a 3.6 per cent growth in 2018. Adding fuel to the fire, economic data released by the Australian Bureau of Statistics yesterday showed that unemployment in Australia climbed to 5.3 per cent in August.
Investors will be keeping a close eye on coal and gas stocks today as thousands of kids from schools across the nation take to the streets for the global climate strikes ahead of the United Nations Climate Action Summit. These strikes will kick off in Australia and New Zealand and make their way around the world, with many listed companies, including the National Australia Bank (ASX:NAB) and Atlassian Corporation (NASDAQ:TEAM) supporting workers who choose to participate.
On the commodities front, the price of crude oil rose to US$58.64 a barrel overnight as the market struggled to recover from the shortfall created by the Saudi attacks earlier this week.
Taking all of this into equation, the SPI futures are pointing to a 0.2 per cent gain.
Yesterday, the Australian share market closed 36 points or 0.5 per cent higher at 6,718.
Wall Street closed mixed yesterday: The Dow Jones Industrial Average lost 0.2 per cent to close at 27,095, the S&P 500 closed flat at 3,007 and the NASDAQ added 0.1 per cent to 8,183.
European markets closed higher: London’s FTSE added 0.6 per cent, Paris gained 0.7 per cent and Frankfurt was up 0.6 per cent.
Asian markets closed mixed: Tokyo’s Nikkei gained 0.4 per cent, Hong Kong’s Hang Seng dipped 1.1 per cent and China’s Shanghai Composite added 0.5 per cent.
Property development company, Cedar Woods Properties (ASX: CWP) has penned a conditional agreement to acquire a 12.4 hectare property in Western Australia, near Perth’s CBD, from Broadcast Australia. Cedar Woods are set to pay $21.2 million plus GST. The purchase is conditional on town and environmental approvals. This is the company’s third acquisition over the past 12 months. Cedar Wood’s Managing Director, Nathan Blackburne says it is an optimal time in the property cycle to make acquisitions in order to further diversify the company. He signalled the company’s intention to make further acquisitions in WA, Victoria and Queensland. Shares in Cedar Woods Properties (ASX:CWP) closed flat at $6.88 yesterday.
Mid cap gold miner, Northern Star Resources (ASX:NST), has released an update on its Pogo gold mine in the state of Alaska. The company has committed $37 million in the 2020 financial year to developing and establishing new areas. They say the local workforce has embraced new methods and increased productivity. In August of 2019 they achieved over 1,400 metres of advance - a 76 per cent increase from their average advance at the site. This follows the acquisition of the nearby Stone Boy Project for approximately US$1.2 million. Shares in Northern Star Resources (ASX:NST) closed 1.96 per cent lower at $11.03 yesterday.
Ex – Dividend
Absolute Equity Performance Fund (ASX:AEG) is paying 4 cents fully franked
Enero Group Ltd (ASX:EGG) is paying 3 cents fully franked
The Environmental Group Ltd (ASX:EGL) is paying 0.06 cents fully franked
Monash Absolute Investment Company Ltd (ASX:MA1) is paying 2 cents fully franked
One Australian Dollar at 7:40 AM was buying 67.94 US cents, 54.24 Pence Sterling, 73.41 Yen and 61.55 Euro cents.
Iron Ore futures suggest a 2.9 per cent fall.
Gold has lost $9.50 to US$1506 an ounce.
Silver has dropped $0.06 to US$17.86 an ounce.
Oil has added $0.60 to US$58.64 a barrel.