Australian shares are poised to slide at the open after mostly lower results on Wall Street and negative leads from European markets. Reporting Season is well underway, with Iluka Resources (ASX:ILU), National Australia Bank (ASX:NAB) and Newcrest Mining (ASX:NCM) expected to release their financial results today.
Local Economic News
The Australian Bureau of Statistics will release the overseas arrival and departure figures for the month of June. Reserve Bank Governor, Philip Lowe, is due to provide testimony to the House of Representatives Standing Committee on Economics this morning.
Wall Street closed mixed yesterday: The Dow Jones Industrial Average lost 0.3 per cent to 27,897 the S&P 500 fell 0.2 per cent to 3373 and the NASDAQ closed 0.3 per cent higher at 11,043.
European markets closed lower, London’s FTSE lost 1.5 per cent, Paris fell 0.6 per cent and Frankfurt closed 0.5 per cent lower.
Asian markets closed mixed, Tokyo’s Nikkei gained 1.8 per cent, Hong Kong’s Hang Seng lost 0.1 per cent and China’s Shanghai Composite closed 0.04 per cent higher.
Taking all of this into equation, the SPI futures are pointing to a 0.1 per cent lost. The Australian sharemarket ended yesterday’s session 0.7 per cent lower at 6091, with weaker earnings and poor economic data weighing on the local bourse.
In Company news that broke after the market close yesterday, a subsidiary of Ricegrowers (ASX:SLLLV), CopRice, has penned a purchase agreement to acquire the dairy and beef business of Riverbank Stockfeeds for under $10 million. CopRice produces stockfeed and companion animal products. The acquisition target, Riverbank Stockfeeds is a Victorian-based producer of livestock products. Ricegrowers trades under the name SunRice, and the acquisition is part of the SunRice Group’s 2022 Growth Strategy, under which it plans to leverage its balance sheet to pursue merger and acquisition opportunities and diversify its earnings. Completion of the acquisition is expected over the coming months, pending satisfaction of a number of conditions precedent. Shares in Ricewgrowers (ASX:SLLLV) closed 0.2 per cent lower at $5.09 yesterday.
One Australian Dollar at 6:55 AM was buying 71.49 US cents, 54.73 Pence Sterling, 76.44 Yen and 60.53 Euro cents.
Iron Ore lost 0.1 per cent to US$121.38.
Iron Ore futures suggest a 0.2 per cent fall.
Gold has gained $14.30 to US$1963 an ounce.
Silver was up $1.60 to US$27.58 an ounce.
Oil was down $0.31 to US$42.36 a barrel.