Tesla to build fourth ‘Gigafactory’: Aus shares to open higher

Market Reports

by Ortenzia Borre

Australian shares are poised to edge higher at opening following positive results from Wall Street overnight. US President Donald Trump spoke at the Economic Club of New York although remained neutral on any new information regarding the US-China trade deal. The President said they’re close to securing a deal and reiterated they will only accept an offer if it's good for the United States and their workers.

Tesla CEO Elon Musk announced plans for a fourth factory and design centre near Berlin. The electric car company will build what is called a ‘Gigafactory’ and said part of the reason they’re locating to Germany is because “everyone knows that German engineering is outstanding”.

Local Economic News

ABS Wage Price Index, September 2019.

Markets

To the figures from around the globe: Wall Street closed mostly higher yesterday: The Dow Jones Industrial Average closed flat at 27,691, the S&P 500 closed 0.2 per cent higher at 3092 and the NASDAQ added 0.3 per cent to 8486.

European markets closed higher: London’s FTSE gained 0.5 per cent, Paris added 0.4 per cent and Frankfurt closed 0.7 per cent higher.

Asian markets closed higher: Tokyo’s Nikkei added 0.8 per cent, Hong Kong’s Hang Seng closed 0.5 per cent higher and China’s Shanghai Composite gained 0.2 per cent.

Taking all of this into equation, the SPI futures are pointing to a 0.3 per cent gain.

Yesterday, the Australian share market closed 20 points or 0.3 per cent lower at 6753.

Company news

Fortescue Metals Group Ltd (ASX:FMG) has entered into a $6 million Paterson Farm In and joint venture with gold and base metals explorer Carawine Resources (ASX:CWX).

The agreement will see Fortescue explore Carawine’s eastern Paterson Project tenements in Western Australia targeting copper, gold and base metals with Carawine well positioned to share in the benefits of any discovery.

Carawine Managing Director David Boyd said the Agreement with Fortescue represents another great opportunity for the Company to realise the significant potential of its Paterson Project tenements.

The deal compliments Carawine’s last month’s farm-in and joint venture agreement with Rio Tinto Exploration Pty Ltd (ASX:RIO).

Shares in Fortescue Metals (ASX:FMG) closed 2.1 per cent lower at $8.86 yesterday.

Ex-Dividend

Australian Pharmaceutical Industries Ltd (ASX:API) is paying 4 cents fully franked.
Genworth Mortgage Insurance Australia (ASX:GMA) is paying 24.2 cents unfranked.

Currencies

One Australian Dollar at 8:35 AM was buying 68.40 US cents, 53.25 Pence Sterling, 74.54 Yen and 62.14 Euro cents.

To Commodities

Iron Ore is 3.2 per cent higher at US$81.48.
Iron Ore futures suggest a 1.6 per cent gain.
Gold has added $2.00 to US$1459 an ounce.
Silver has dropped $0.03 to US$16.77 an ounce.
Oil has dropped $0.09 to US$56.77 a barrel.