US manufacturing suffers worst month in a decade: 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. In the US, banks led the decline as rates moved lower, followed by industrial companies. All three benchmarks were lower. Safe haven gold and the Japanese yen advanced. The Hang Seng and Shanghai Comp were closed for National Day. Meanwhile, the once peaceful protests in Hong Kong descended into violence as police shot a protester and fired tear gas as demonstrators threw gas bombs. Yesterday marked the 70th anniversary of the People’s Republic of China.

US economic news

The US manufacturing purchasing managers’ index from the Institute for Supply Management was at 47.8 per cent in September, the lowest since June 2009, marking the second consecutive month of contraction. Any figure below 50 per cent signals a contraction.

Markets

Wall Street closed lower yesterday: The Dow Jones Industrial Average lost 1.3 per cent to close at 26,573, the S&P 500 closed 1.2 per cent lower at 2940 and the NASDAQ lost 1.1 per cent to 7909.

European markets closed mixed: London’s FTSE lost 0.7 per cent, Paris dipped 1.4 per cent and Frankfurt dropped 1.3 per cent.

Asian markets closed mostly higher: Tokyo’s Nikkei added 0.6 per cent, while Chinese markets were closed due to National Day

Taking all of this into equation, the SPI futures are pointing to a 1.1 per cent fall.

Yesterday, the Australian share market closed 55 points or 0.8 per cent higher at 6742.

Company news

Sundance Energy Australia (ASX:SEA) reports that yesterday the Federal Court of Australia (1 October 2019) approved orders to convene a meeting of Sundance's shareholders to consider and vote on the Company's proposed redomiciliation from Australia to the United States via a Scheme of Arrangement. A newly formed US corporation, “Holdco” will become the ultimate parent company of the Sundance group of companies following the implementation of the Scheme. Pursuant to the Scheme, Sundance shareholders will be entitled to receive one share in Holdco for every 100 Sundance shares held by Sundance shareholders on the Scheme record date. Shares in Sundance Energy (ASX:SEA) closed 2.63 per cent lower at $0.19 yesterday.

Ex – Dividend

Academies Australasia Group (ASX:AKG) is paying 2.4 cents fully franked
Collection House (ASX:ICS) is paying 4.1 cents fully franked
Perpetual Equity Investment Company (ASX:IPC) is paying 3.4 cents fully franked

Currencies

One Australian Dollar at 7:40 AM was buying 67.04 US cents, 54.55 Pence Sterling, 72.24 Yen and 61.36 Euro cents.

Commodities

Iron Ore futures suggest a 2.5 per cent gain.
Gold has gained $12.30 to US$1485 an ounce.
Silver has added $0.29 cents to US$17.29 an ounce.
Oil has fallen by $0.09 to US$53.98 a barrel.