The ASX is set to open higher and unwind some of yesterday’s losses. The expected rally follows speculation that the US Federal Bank may effect a third rate cut for the year at its October policy meeting. This follows fears surrounding the soft US manufacturing and hiring data that was released earlier in the week and the ongoing trade war with China. Gold miners managing to swim against the tide of negative sentiment off the back of a declining Aussie dollar. Alan Dixon has resigned from wealth management company, Evans Dixon (ASX:ED1) overnight.
US economic news
Data from the Institute for Supply Management released overnight suggests that the service side of the US economy is growing at its slowest pace in three years. The ISM non-manufacturing purchasing managers’ index showed that the reading for September fell back to 52.6 points, down from 56.4 in August. This is well below the 55.3 points reading expected by economists. This comes after the survey showed a rebound in the previous month of August. Following the news the US stock marker. The news sparked a sell off in US stocks before speculation regarding a potential rate cut stabilised the market.
Local economic news
We are expecting to see the ABS issue retail spending figures for August and the Reserve Bank issue the financial Stability Review.
Wall Street closed up yesterday: The Dow Jones Industrial Average gained 0.5 per cent to close at 26,201, the S&P 500 added 0.8 per cent to close at 2,910 and the NASDAQ added 1.1 per cent to close at 7,872.
European markets closed mixed: London’s FTSE closed 0.6 per cent lower, Paris gained 0.3 per cent and Frankfurt was closed due to German Unity Day.
Asian markets closed mixed: Tokyo’s Nikkei lost 2 per cent, Hong Kong’s Hang Seng added 0.4 per cent, and China’s Shanghai Composite was closed due to the National Day Holiday.
Taking all of this into equation, the ASX futures are pointing to a lift of 0.5 per cent. Yesterday the S&P/ASX 200 Index slumped 2.2 per cent or 147 points lower to close at 6,493.
Financial services company, Evans Dixon (ASX:ED1) will see Alan Dixon resign from his executive duties effective from 31 October 2019. This follows a recent extended leave from the business and the company’s decision to appoint Peter Anderson as CEO to replace Mr Dixon in July. Mr Dixon will receive $280,000 in lieu of his bonus for the 6 month period to December 2019. Shares in Evans Dixon (ASX code: ED1) closed flat at 79 cents.
Wam Active (ASX:WAA) is paying a dividend of 2.95 cents fully franked.
Wam Research (ASX:WAX) is paying a dividend of 4.85 cents fully franked.
Wam Microcap (ASX:WMI) is paying a dividend of 2.25 cents fully franked.
One Australian Dollar at 7:30AM was buying 67.44 US cents, 54.68 Pence Sterling, 72.09 Yen and 61.48 Euro cents.
Iron Ore futures suggest a 2.5 per cent rise.
Gold has gained $3.20 to US$1,511 an ounce.
Silver has lost 7 cents to US$17.61 an ounce.
Oil has fallen by 33 cents to US$52.31 a barrel.