Fortescue Metals Group (ASX:FMG) lodges High Court appeal: Aus shares to open flat

Market Reports

by Ortenzia Borre

The Australian share market is looking at a flat opening for the start of the trading week although a weekend call between negotiators on a China and US deal fuelled optimism after they had ‘constructive discussions’ regarding the phase-one trade deal. It’s been reported that both parties considered “each other’s core concerns” and agreed to remain in close contact, with White House Economic Advisor Larry Kudlow confirming that Washington and Beijing were close to a deal. Following the comments, Wall Street had a record-breaking session on Friday with the Dow Jones Industrial Average breaking through 28,000 points for the first time.

To the figures from around the globe:
Wall Street closed higher on Friday: The Dow Jones Industrial Average added 0.8 per cent to close at 28,005, the S&P 500 gained 0.8 per cent to close at 3120 and the NASDAQ rose 0.7 per cent to 8541.

European markets

London’s FTSE gained 0.1 per cent, Paris added 0.7 per cent and Frankfurt closed 0.5 per cent higher.

Asian markets 

Tokyo’s Nikkei added 0.7 per cent, Hong Kong’s Hang Seng closed almost flat and China’s Shanghai Composite lost 0.6 per cent.

Taking all of this into equation, the SPI futures are pointing to 0.04 per cent fall. On Friday, the Australian share market closed 59 points (0.9 per cent) higher at 6794.

Local Economic News

Monday - Reserve Bank Governor Philip Lowe gives a speech at the Trans-Tasman Business Circle at the Australian Stock Exchange.

Tuesday - Reserve Bank’s November 5 Board minutes are issued.

Thursday - the Bureau of Statistics releases detailed estimates on the job market for October.

Friday - the Commonwealth Bank/IHS Markit issues the ‘flash’ services and manufacturing purchasing manager indexes for November.

Company news 

Fortescue Metals Group (ASX:FMG) has lodged an appeal with the High Court over a landmark native title ruling. The mining company is fighting a decision from 2017 that granted the Yindjibarndi people of Western Australia’s Pilbara region exclusive possession rights over ground positioned on Fortescue’s Solomon mine. Last month the court rejected Fortescue’s appeal of the landmark 2017 decision and on Friday, the final day for Fortescue to lodge its appeal, the company repeated its earlier advice that the previous decision had no impact on its current or future operations at the Solomon Hub. Shares in Fortescue Metals Group (ASX:FMG) closed 3.8 per cent higher to $9.06 on Friday.

Ex-Dividends:

Australian Leaders Fund (ASX:ALF) is paying 2.5 cents 50 per cent franked
Ausnet Services Ltd (ASX: AST) is paying 5.1 cents 50 per cent franked
Elders Ltd (ASX:ELD) is paying 9 cents fully franked
Garda Diversified Property Fund (ASX:GDF) is paying 1.5 cents unfranked

One Australian Dollar at 7:40 AM was buying 68.21 US cents, 52.83 Pence Sterling, 74.17 Yen and 61.71 Euro cents.

To Commodities

Iron Ore has added 1.9 per cent to US$85.04.
Iron Ore futures suggest a 1.03 per cent gain.
Gold has dropped $4.90 to US$1469 an ounce.
Silver was down 8 cents to US$16.95 an ounce.
Oil has gained $0.95 to US$57.72 a barrel.