China-US trade talks lose optimism: ASX poised 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. Wall Street took a negative turn yesterday as investor optimism around the US-China trade talks took a dip. High level talks are expected soon. The US blacklisted several Chinese tech companies. The move was to allegedly punish China for its treatment of predominantly Muslim ethnic minorities. China is expected to retaliate. Meanwhile, US Federal Reserve chairman Jerome Powell continued to make signals towards a cut in interest rates to offset global risks to the US economy. On the commodities front, oil has dropped and safe haven gold has added.

Local economic news

Westpac-MI consumer confidence for October

Markets

Wall Street closed lower yesterday: The Dow Jones Industrial Average lost 1.2 per cent to close at 26,164, the S&P 500 closed 1.6 per cent lower at 2893 and the NASDAQ lost 1.7 per cent to 7824.

European markets closed lower: London’s FTSE fell 0.8 per cent, Paris dropped 1.2 per cent and Frankfurt was down 1.1 per cent.

Asian markets closed higher, Tokyo’s Nikkei added almost 1 per cent, Hong Kong’s Hang Seng added 0.3 per cent and China’s Shanghai Composite rose 0.3 per cent.

Taking all of this into equation, the SPI futures are pointing to an almost 1 (0.97) per cent fall.

Yesterday, the Australian share market closed 30 points or 0.5 per cent higher at 6593.

Company news 

One of the directors of the Afterpay Touch Group (ASX:APT) David Hancock has resigned. He was appointed as an independent Non-Executive Director back in 2017 following the merger between Afterpay and Touchcorp. He held the position of Group Head for two years until June this year. He will continue in a role with the Company as a consultant. Shares in the Afterpay Touch Group (ASX:APT) closed 0.8 per cent lower at $34.65 yesterday.

New Zealand telecommunications company Chorus (ASX:CNU) has appointed JB Rousselot as its new chief executive. He’ll move from Australia to Auckland for the role. He previously held senior positions at Telstra (ASX:TLS) and NBN. Current CEO Kate McKenzie will step down from the board on November 19.
Shares in Chorus (ASX:CNU) closed 0.42 per cent lower at $4.76 yesterday.

Ex – Dividend

Gowing Bros. Limited (ASX:GOW) is paying 5 cents fully franked
Noni B Limited (ASX:NBL) is paying 5.5 cents fully franked

Currencies

One Australian Dollar at 7:40 AM was buying 67.28 US cents, 55.10 Pence Sterling, 72.04 Yen and 61.43 Euro cents.

Commodities

Iron Ore has gained 1.5 per cent to US$94.77
Iron Ore futures suggest a 0.1 per cent fall.
Gold has added $6.90 to US$1511 an ounce.
Silver has gained $0.25 cents to US$17.79 an ounce.
Oil has dropped $0.53 to US$52.22 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.