America’s support of Hong Kong to threaten US-China trade deal? Aus shares to open higher

Market Reports

by Katrina Bullock

US markets were closed overnight for the Thanksgiving holiday and will close early today. European markets retreated as investors fear what the US’s ratification of the Hong Kong Human Rights and Democracy Act could mean for the US-China trade deal. The Act supports the Hong Kong protesters and requires a State Department-led annual assessment of whether Hong Kong retains sufficient political autonomy to continue to qualify for favourable trading terms with the US. China’s Ministry of Foreign Affairs has denounced the legislation as an intrusion on its sovereignty. The ASX futures market is indicating a positive start for the Australian share market. Gold rose slightly overnight.

Local economic news 

The Reserve Bank of Australia is scheudled to release private sector credit figures for October.

Markets

Asian markets closed lower: Tokyo’s Nikkei lost 0.1 per cent, Hong Kong’s Hang Seng dipped 0.2 per cent and China’s Shanghai Composite closed 0.5 per cent lower.

Taking all of this into equation, the SPI futures are pointing to a 0.4 per cent rise.

Yesterday, the Australian share market closed 13 points or 0.2 per cent higher at 6864.

Company news

Dairy manufacturer, Synlait Milk (ASX:SM1), is offering up to $150 million of 5 year unsecured subordinated fixed rate bonds. The bonds are being offered to New Zealand institutional and retail investors and are set to mature on 17 December 2024. The offer is expected to open on 9 December 2019 and close on the 13 December 2019. An announcement of the interest rate for the bonds will be made following a bookbuild process, which is expected to be completed on 6 December 2019. Shares in Synlait Milk (ASX:SM1) closed 3.2 per cent lower at $8.65 yesterday.

Ex-dividends

Incitec Pivot (ASX:IPL) is paying 3.4 cents 30 per cent franked.
Mcp Income Opportunities Trust (ASX:MOT) is paying 1.25 cents unfranked.
Mcp Master Income (ASX:MXT) is paying 0.82 cents unfranked.
NRW Holdings (ASX:NWH) is paying 2 cents fully franked.

Currencies

One Australian Dollar at 8:40 AM was buying 67.69 US cents, 52.45 Pence Sterling, 74.13 Yen and 61.50 Euro cents.

Commodities

Iron Ore has added 0.1 per cent to US$84.42.
Iron Ore futures suggest a 0.3 per cent rise.
Gold has gained $1.30 to US$1462 an ounce.
Silver has lost $0.02 to US$17.03 an ounce.
Oil has gained $0.13 to US$58.24 a barrel.