Wall Street banks fall despite US rate cut: Aus shares to open lower

Market Reports

by Katrina Bullock

Australian shares are poised to fall at the open following weak leads from Wall Street and renewed concerns over the US-China trade deal. This comes as Bloomberg releases a repot which exposes that Chinese officials harbour doubts about the possibility of concluding a comprehensive, long-term trade deal with Washington, even as the two parties get closer to signing a “phase one” agreement. US listed bank stocks have seen a surprising sell off despite the US Federal Open Market Committee’s decision on Wednesday to lower the benchmark funds rate. Back home, all eyes will be on the Healthcare sector today following the release of an Interim Report on the Royal Commission into Aged Care Quality and Safety.

Economic news

CoreLogic Home Value Index (October)

AiGroup Manufacturing Purchasing Surveys (October)

Markets

To the figures from around the globe: Wall Street closed lower yesterday: The Dow Jones Industrial Average lost 0.5 per cent to close at 27,046.23, the S&P 500 closed 0.3 per cent lower at 3038 and the NASDAQ fell 0.14 per cent to 8292.

European markets closed lower: London’s FTSE dropped 1.1 per cent, Paris shed 0.6 per and Frankfurt closed 0.3 per cent lower.

Asian markets closed mixed: Tokyo’s Nikkei added 0.4 per cent, Hong Kong’s Hang Seng gained 0.9 per cent and China’s Shanghai Composite lost 0.4 per cent.

Taking all of this into equation, the SPI futures are pointing to a 0.3 per cent fall at the open. Yesterday the Australian share market closed lower with the S&P/ASX 200 Index down 26 points or 0.4 per cent at 6,663 at the close.

Company news

Metal producer, Zimplats Holdings (ASX:ZIM) has elected Chipo Mtasa as an independent non-executive director to replace retiring director, Nyasha Zhou. Chipo Mtasa has senior management experience within the Zimbabwean telecommunication industry and was previously the CEO of a large hospitality group. She is a non-executive director of FBC Holdings, Brainworks Capital and West Indian Ocean Cable Company. She has been appointed as the chairperson of the board’s audit and risk committee and will also hold a position on the remuneration committee. Shares in Zimplats Holdings (ASX:ZIM) closed flat at $10.80 yesterday.

Ex-Dividend

Freedom Foods Group (ASX:FNP) is paying 3.25 cents unfranked.
NB Global Corporate Income Trust (ASX:NBI) is paying 0.8991 cents unfranked.

Currencies

One Australian Dollar at 7:40AM was buying 68.94 US cents, 53.27 Pence Sterling, 74.47 Yen and 61.85 Euro cents.

Commodities

Iron Ore has dropped 1.3 per cent to US$85.97.
Iron Ore futures suggest a 0.2 per cent fall.
Gold has gained $17.90 to US$1515 an ounce.
Silver has added $0.24 to US$18.11 an ounce.
Oil has lost $0.9 to US$54.16 a barrel.