Fonterra post net loss of $605m: ASX set to open higher

Market Reports

by Rachael Jones

Following positive leads from US markets, the Australian share market looks set to open higher this morning. The S&P 500 slowed a three-day slide helped by tech and banks. As Trump's impeachment drama continues, he suggested a trade deal with China was possible and also looked into a pact with Japan. US stocks rallied on the hope the almost 15-month trade war could come to an end. On the commodities front, oil dropped slightly and gold dropped almost $30

Local economic news 

ABS job vacancies August

Markets

Wall Street closed higher yesterday: The Dow Jones Industrial Average added 0.6 per cent to close at 26,971, the S&P 500 closed 0.6 per cent higher at 2985 and the NASDAQ gained 1.1 per cent to 8077.

European markets closed lower: London’s FTSE fell 0.02 per cent, Paris lost 0.8 per cent and Frankfurt was down 0.6 per cent.

Asian markets closed lower: Tokyo’s Nikkei fell 0.4 per cent, Hong Kong’s Hang Seng dropped 1.3 per cent and China’s Shanghai Composite lost 1 per cent. 

Taking all of this into equation, the SPI futures arepointing to a 0.2 per cent gain.

Yesterday, the Australian share market closed 39 points or 0.6 per cent lower at 6710.

Company news

Diary giant Fonterra (ASX:FSF) has posted a net loss after tax of $605 million for the July year, slightly better than expected. Normalised earnings before interest and tax (EBIT) was $819 million, down 9 per cent, the Co-operative’s free cashflow was $1,095 million, up 83 per cent, and the return on capital was 5.8 per cent, down from 6.3 per cent. Fonterra CEO Miles Hurrell says that 2019 was incredibly tough for the Co-op but it was also the year Fonterra made decisions to set it up for future success. Shares in Fonterrra Shareholders Fund (ASX:FSF) closed 1.34 per cent higher at $3.03 yesterday.

Ex – Dividend

A2B Australia Ltd (ASX:A2B) is paying 4 cents fully franked
Atlas Arteria Group (ASX:ALX) is paying 15 cents unfranked
BWX Limited (ASX:BWX) is paying 2.7 cents fully franked
Countplus Limited (ASX:CUP) is paying 1 cent fully franked
EBOS Group Ltd (ASX:EBO) is paying 31.0461 cents 95.77 per cent franked
Huon Aquaculture Group Ltd (ASX:HUO) is paying 3 cents 50 per cent franked
Japara Healthcare Ltd (ASX:JHC) is paying 3.35 cents 50 per cent franked
Lycopodium Limited (ASX:LYL) is paying 15 cents fully franked
Mastermyne Group Limited (ASX:MYE) is paying 4 cents fully franked
Nine Entertainment Co Holdings Ltd (ASX:NEC) is paying 5 cents fully franked
Prime Financial Group Ltd (ASX:PFG ) is paying 0.2 centsfully franked
Qualitas Real Estate Income Fund (ASX:QRI) is paying 0.9511 cents unfranked
Viva Energy Group Ltd (ASX:VEA) is paying 2.1 cents fully franked

Currencies

One Australian Dollar at 7:40AM was buying 67.54US cents, 54.67Pence Sterling, 72.80 Yen and 61.73 Euro cents.

Commodities

Iron Ore has lost 0.1 per cent to US$90.34.
Iron Ore futures suggest a 2.6 per cent gain.
Gold has dropped $29.20 to US$1511 an ounce.
Silver has lost $0.75 to US$17.96 an ounce.
Oil has dropped $0.63 to US$56.66 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.