Following weak leads from US markets, the Australian share market looks set to open lower this morning. Over in the US stocks fell on fears of escalation of military activity in the Middle East after the Commander of Iran's Islamic Revolutionary Guards Corps was killed in Baghdad by rockets from an American strike. Iran has vowed “severe retaliation.” The S&P 500 Index posted its biggest loss in a month On the commodities front, oil has risen and safety net gold has climbed following the Middle East flare-up.
Local economic news
Today the AiG will release performance of manufacturing for December.
The Australian Bureau of Statistics will release Job vacancy figures for November as well as building approvals for the month.
International Trade in Goods and Services, for November from the ABS
Retail Trade, November 2019.
Wall Street closed lower yesterday: The Dow Jones Industrial Average lost 0.8 per cent to close at 28,635, the S&P 500 lost 0.7 per cent to close at 3,235 and the NASDAQ lost 0.8 per cent to close at 9,021.
European markets closed mixed: London’s FTSE closed 0.2 per cent higher, Paris added 0.04 per cent and Frankfurt lost 1.3 per cent.
Asian markets closed lower: Tokyo’s Nikkei lost 0.8 per cent, Hong Kong’s Hang Seng fell 0.3 per cent, and China’s Shanghai Composite lost 0.1 per cent.
Taking all of this into equation, the ASX futures are pointing to a 4 point fall. On Friday the Australian share market closed higher with the S&P/ASX 200 Index closing 43 points higher at 6,734.
Resolute Mining (ASX:RSG) has taken advantage of market volatility and current gold price strength to extend the Company’s US dollar denominated gold hedge position. The Company has forward sold an additional 22,800 ounces of gold at an average price of US$1,553 per ounce in scheduled monthly deliveries of 3,800 ounces between July 2020 and December 2020. This hedging secures price certainty during 2020 for a portion of the US dollar revenues generated from Resolute’s African gold mines: the Syama Gold Mine in Mali and the Mako Gold Mine in Senegal. Shares in Resolute Mining (ASX:RSG) closed 3.6 per cent higher on Friday at $1.28.
One Australian Dollar at 7:30AM was buying 69.38 US cents, 53.08 Pence Sterling, 74.91 Yen and 62.16 Euro cents.
Iron Ore futures suggest a 0.7 per cent rise
Gold has gained $24.30 to US$1,552 an ounce.
Silver has gained $0.11 to US$18.15 an ounce.
Oil has risen by $1.87 to US$63.05 a barrel.