Gold sees fresh monthly lows: ASX set to open lower

Market Reports

by Rachael Jones

The Australian share market looks set to drop this morning as the S&P 500, the Dow and the Nasdaq all closed lower. There’s an interesting story in the US at the moment as Tesla is suing the US government over the Trump administration’s tariffs on parts Tesla imports from China to manufacture its electric cars. Also, the owner of TikTok has asked a US court to temporarily block their Trump ban. That ban was supposed to come into place on Sunday, but after the ByteDance/Oracle deal, it was delayed by a week. US dollar continues to gain.

Local Economic News

Australian National Accounts: Finance and Wealth

Markets 

Wall Street closed lower yesterday: The Dow Jones Industrial Average lost 1.9 per cent to 26,763 the S&P 500 fell 2.4 per cent to 3237 and the NASDAQ closed over 3 per cent lower at 10,633.

European markets closed higher, London’s FTSE gained 1.2 per cent, Paris added 0.6 per cent and Frankfurt closed 0.4 per cent higher.

Asian markets closed mixed, Tokyo’s Nikkei fell 0.1 per cent, Hong Kong’s Hang Seng added 0.1 per cent and China’s Shanghai Composite closed 0.2 per cent higher.

Taking all of this into equation, the SPI futures are pointing to 0.9 per cent fall.

Yesterday, the Australian share market closed 2.4 per cent higher at 5924.

Company news

New Zealand energy company Mercury (ASX:MCY) has revised its FY2021 EBITDAF guidance from $515 million to $505 million. This reflects an expected 200 gigawatt hours decrease in full year hydro generation to 3,700 GWh due to dry weather conditions in the Taupo catchment in FY2021 to date. Guidance may change and remains subject to any material events, significant one-off expenses or other unforeseen circumstances including changes to hydrological conditions. Shares in Mercury NZ (ASX:MCY) closed 0.89 per cent higher at $4.54 yesterday.

Ex-Dividends

Capitol Health (ASX:CAJ) is paying 0.5 cents fully franked
Countplus Limited (ASX:CUP) is paying 1.25 cents fully franked
Ebos Group Ltd (ASX:EBO) is paying 32.4053 cents 95.77 per cent franked
Fonterra Share Fund (ASX:FSF) is paying 3.9091 cents unfranked
Glennon Small Companies Ltd (ASX:GC1) is paying 2 cents unfranked
Heartland Group (ASX:HGH) is paying 2.2999 cents 85 per cent franked
Lindsay Australia (ASX:LAU) is paying 0.5 cents fully franked
Lycopodium Limited (ASX:LYL) is paying 5 cents fully franked
Mastermyne Group Ltd (ASX:MYE) is paying 4 cents fully franked
Swick Mining (ASX:SWK) is paying 0.3 cents fully franked
Vita Life Sciences (ASX:VLS) is paying 1.5 cents fully franked

Currencies

One Australian Dollar at 7:45 AM was buying 70.82 US cents, 55.66 Pence Sterling, 74.59 Yen and 60.72 Euro cents.

Commodities

Iron Ore lost 3 per cent to US$113.81.
Iron Ore futures suggest a 0.1 per cent gain.
Gold has dropped $41 to US$1867an ounce.
Silver was down $1.63 to US$22.90 an ounce.
Oil was down $0.21 to US$39.59 a barrel.