US stimulus deal unlikely: Aus shares to open lower


The Australian sharemarket is poised to dip at the open, following Wall Street lows on the back of US Treasury Secretary Steven Mnuchin’s comment slashing hopes of a $1.8 trillion stimulus package before the US presidential election. Pauses in 2 major COVID-19 vaccine trials have had a negative bearing on global share markets, as European and Asian markets closed mostly lower. Chinese President Xi Jin Ping’s speech about stronger economic reform on the Shenzhen Special Economic Zone’s 40th anniversary, did little to entice investors in the mainland and Hong Kong indicies.

Economic news

Reserve Bank Governor, Philip Lowe, will speak at the Citi Australia and New Zealand Annual Investment Conference (AEDT 8.45am).
And, We are the expecting the ABS to release the September jobs data.

Markets

To the figures from around the globe: Wall Street closed lower yesterday: The Dow Jones Industrial Average lost 0.6 per cent to 28,514, the S&P 500 fell 0.7 per cent to 3489 and the NASDAQ closed 0.8 per cent lower at 11,769. European markets closed mixed, London’s FTSE lost 0.6 per cent, Paris fell 0.1 per cent and Frankfurt closed 0.1 per cent higher. In Asian markets, Tokyo’s Nikkei added 0.1 per cent, Hong Kong’s Hang Seng gained 0.1 per cent and China’s Shanghai Composite closed 0.6 per cent lower.

Taking all of this into equation, the SPI futures are pointing to 0.2 per cent fall.

Yesterday, the Australian share market closed 0.3 per cent lower at 6179.

Company news

Property heavyweight Charter Hall (ASX:CHC) is tipped to become the winner of the race for the sale and leaseback of the David Jones flagship store on Elizabeth Street in the Sydney CBD. According to David Jones’ owner, South African retail giant Woolworths, the purchase is still under exclusive negotiations, subject to formal due diligence and conclusion of final terms.The 9-level landmark property is estimated at $450 million and is considered the next piece to Charter Hall’s sale and leaseback mosaic worth $8.5 billion. David Jones remains a long-term tenant in the property. Shares in Charter Hall (ASX:CHC) closed 0.5 per cent higher at $13.42 yesterday

Ex-Dividends

Australian Vintage Ltd (ASX:AVG) is paying 2.7 cents 62.96 per cent franked
Duxton Water Ltd (ASX:D2O) is paying 2.9 cents fully franked
Plato Income Maximiser Ltd (ASX:PL8) is paying 0.4 cents fully franked

Currencies

One Australian Dollar at 7:30 AM was buying 71.63 US cents, 55.04 Pence Sterling, 75.31 Yen and 60.99 Euro cents.

Commodities

Iron Ore has lost 1.3 per cent to US$119.52.
Iron Ore futures suggest 1.8 per cent fall.
Gold has gained $9.50 to US$1904 an ounce.
Silver was up $0.21 to US$24.34 an ounce.
Oil was up $0.84 to US$41.04 a barrel.