Trump threatens higher tariffs if China deal doesn’t go through: ASX set to open lower

Market Reports

by Rachael Jones

Following weak leads from US markets, the Australian share market looks set to open lower this morning. This comes after President Donald Trump threatening higher tariffs on Chinese goods if a trade deal didn't eventuate. The world’s two largest economies, have been locked in trade negotiations for the last two years. Also, markets were jittery after retail reports from the US show mixed sales forecasts could see sales profits down in the pre-Christmas boom. Meanwhile the Aussie dollar clawed back after the RBA yesterday reported that they had considered cutting interest rates earlier this month. On the commodities front, oil fell overnight and gold added a dollar.

Local economic news

We can expect to see the WBC release the leading index for October

Markets

Wall Street closed mixed yesterday: The Dow Jones Industrial Average closed 0.4 per cent lower at 27,934, the S&P 500 closed 0.1 per cent lower at 3120 and the NASDAQ rose 0.2 per cent to 8571.

European markets closed mixed: London’s FTSE added 0.2 per cent, Paris fell 0.4 per cent and Frankfurt closed 0.1 per cent higher.

Asian markets closed mixed: Tokyo’s Nikkei fell 0.5 per cent, Hong Kong’s Hang Seng gained 1.6 per cent and China’s Shanghai Composite added 0.9 per cent.

Taking all of this into equation, the SPI futures are pointing to a 0.5 per cent fall.

Yesterday, the Australian share market closed 47 points or 0.7 per cent higher at 6814.

Company news

Online travel booking and expense management for business Serko (ASX:SKO) released their half year results showing net profit after tax fell from $0.9 million in the same period a year ago to a loss of $0.9 million. Total Operating Revenue for the six months ended 30 September 2019 increased 29 per cent to $14.7 million from $11.4 million in the same period last year. The result is in line with guidance of an increase of 20 per cent to 40 per cent for the full year. Travel booking platform transaction volumes for the period were 2.2 million up 4.5% over the same period last year. Shares in Serko (ASX:SKO) closed 1.2 per cent lower at $4.26 yesterday.

Ex-Dividends

Dicker Data Limited (ASX:DDR) is paying 5 cents fully franked
Garda Capital Group (ASX:GCM) is paying 3.7 cents 78.37 per cent franked
Pacific Energy (ASX:PEA) is paying 6.5 cents fully franked

Currencies

One Australian Dollar at 8:30 AM was buying 68.27 US cents, 52.82 Pence Sterling, 74.09 Yen and 61.63 Euro cents.

Commodities

Iron Ore is flat at US$85.80.
Iron Ore futures suggest a 0.3 per cent gain.
Gold has added $1.00 to US$1473 an ounce.
Silver has gained $0.12 to US$17.12 an ounce.
Oil has dropped $1.94 to US$55.11 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.