Dow drops after broad sell off: ASX is 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. The Dow plunged more than 450 points as Wall Street continues its rough start to the fourth quarter. Treasuries climbed. Over in the UK Prime Minister Boris Johnson is negotiating the Brexit deal with new proposals to focus on maintaining an open border between Northern Ireland and Ireland. Meanwhile, the US plans to impose tariffs on European Union goods including aircraft and agricultural products. The Hong Kong protests are set to escalate as the shooting of a protester has stirred anger. On the commodities front, gold and the yen continue on demand for haven assets.

Local economic news 

International Trade in Goods and Services, August 2019.

Labour Force Status and Other Characteristics of Families, June 2019.

Markets

Wall Street closed lower yesterday: The Dow Jones Industrial Average lost 1.9 per cent to close at 26,079, the S&P 500 closed 1.8 per cent lower at 2888 and the NASDAQ lost 1.6 per cent to 7909.

European markets closed mixed: London’s FTSE lost 3.2 per cent, Paris dipped 3.1 per cent and Frankfurt dropped 2.8 per cent.

Asian markets closed mostly higher: Tokyo’s Nikkei lost 0.5 per cent, Hong Kong’s Hang Seng was down 0.3 per cent and China’s Shanghai Composite was closed.

Taking all of this into equation, the SPI futures are pointing to a 1.8 per cent fall.

Yesterday, the Australian share market closed 103 points or 1.5 per cent lower at 6742.

Company news 

Engineering company SRG Global (ASX:SRG) says Enzo Gullotti has resigned as Executive Director from the Company with effect from today. He wishes to focus on his other business interests. He has been with the company for over 16 years. Shares in SRG Global (ASX:SRG) closed 1.23 per cent lower at 40 cents yesterday.

The founder and chief executive of Fintech player iSignthis (ASX:ISX) John Karantzis has welcomed the opportunity to address regulator queries in the company after its shares were suspended from trading indefinitely.The suspension comes amid separate inquiries from both the Australian Securities Exchange (ASX) and the Australian Securities and Investments Commission (ASIC). He says the company is fully co-operating with regulators will report further to shareholders as soon as he can. Shares in iSignthis (ASX:ISX) last traded at $1.07.

Ex – Dividend

Auckland International Airport (ASX:AIA) is paying 10.64 cents unfranked
ARB Corporation (ASX:ARB) is paying 21 cents fully franked
Clime Capital (ASX:CAM) is paying 1.25 cents fully franked
Energy One (ASX:EOL) is paying 3 cents unfranked
Sims Metal Management (ASX:SGM) is paying 19 cents fully franked
Virtus Health (ASX:VRT) is paying 12 cents fully franked
Clime Capital (ASX:XRF) is paying 1 cent fully franked

Currencies

One Australian Dollar at 7:50 AM was buying 67.07 US cents, 54.57 Pence Sterling, 71.87 Yen and 61.19 Euro cents.

Commodities

Iron Ore futures suggest a 2.5 per cent gain.
Gold has gained $16.50 to US$1506 an ounce.
Silver has added $0.30 cents to US$17.61 an ounce.
Oil has fallen by $1.15 to US$52.47 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.