US stocks mixed as investors worry over global economy: Aus shares to slip at open

Market Reports

by Anna Napoli

The Australian sharemarket is poised to slip at the open following weak leads from Wall Street. US markets were mixed on Monday as investors worried about the global economy. Dissapointing economic data out of Germany pointed to further economic weakness in Europe. Manufacturing activity in Germany fell to its lowest level since the financial crisis this month.

But it wasn’t all bad news Apple shares rose by 0.5 per cent after US trade regulators approved 10 out of 15 requests for tariff exemptions by the iPhone maker. While American Express rose 1.2 per cent after the company authorized a buyback program of up to 120 million shares.

Oil rose slightly on Monday, after gaining nearly 7 per cent last week, as lingering concerns over global supplies following the Sept. 14 attack on Saudi oil facilities

US economic news

The U.S. manufacturing sector hit a five-month high in September, while the services sector grew at its fastest pace in two months, according to data from IHS Markit.

Local economic news

Today the Reserve Bank Governor Philip Lowe gives a speech at the Armidale Business Chamber.

Markets

Wall Street closed mixed yesterday: The Dow Jones Industrial Average added 0.1 per cent to close at 26,950, the S&P 500 closed 0.01 per cent lower at 2992 and the NASDAQ dipped 0.1 per cent to 8112.

European markets closed lower: London’s FTSE fell 0.3 per cent, Paris dropped 1.1 per cent and Frankfurt was down over 1 per cent.

Asian markets closed lower: Hong Kong’s Hang Seng dipped 0.8 per cent and China’s Shanghai Composite lost almost 1 per cent while Tokyo’s Nikkei was closed.

Returning home, the SPI futures are pointing to a 0.1 per cent fall

Yesterday, the Australian share market closed 19 points or 0.3 per cent higher at 6750.

Company news

Echo Resources (ASX:EAR) has released a statement regarding the off-market takeover bid by Northern Star Resources. Northern Star has now announced that the offer is unconditional, meaning that Echo shareholders who accept the offer are assured of receiving their cash consideration of $0.33 per Echo share. Echo reiterated the Independent Directors unanimous recommendation that Echo shareholders accept the Northern Star bid in the absence of a Superior Proposal. Shares in Echo (ASX:EAR) Shares in Echo Resources (ASX:EAR) closed 1.5 per cent higher at $0.34 yesterday.

Ex – Dividend

Capitol Health Ltd (ASX:CAJ) is paying 0.5 cents fully franked
Carsales.Com Ltd (ASX:CAR) is paying 25 cents fully franked
Generation Development Group Ltd (ASX:GDG) is paying 1 cent unfranked
Regional Express Holdings Ltd (ASX:REX) is paying 8 cents fully franked
Vita Life Sciences Limited (ASX:VLS) is paying 1.5 cents fully franked

Currencies

One Australian Dollar at 7:40 AM was buying 67.79 US cents, 54.54 Pence Sterling, 72.91 Yen and 61.66 Euro cents.

Commodities

Iron Ore has gained 1.7 per cent to US$94.12.
Iron Ore futures suggest a 0.2 per cent gain.
Gold has gained $14.40 to US$1530 an ounce.
Silver has added $0.86 to US$18.71 an ounce.
Oil has added $0.40 to US$58.49 a barrel.