Dow notches best month since 1987: Local shares to open lower following profit taking in the US

Market Reports

by Anna Napoli

Local shares are set to edge lower this morning. In the US Wall Street fell amid profit-taking but the but the major averages posted sharp monthly gains. Travelers and Chevron were among the worst-performing Dow stocks, falling 3.6 per cent and 4.5 per cent, respectively. Energy led the way lower in the S&P 500, losing 5.4 per cent for its worst day since June 24. Stocks which stand to gain the most from a vaccine such as cruise lines are airlines saw broad declines on Monday with Carnival dipping 7.4 per cent and American Airlines down over 5 per cent. However, the monthly gains came as investors confidence increased around the finalisation of a COVID-19 vaccine to fight the pandemic. Small caps rallied over the month as investors piled into beaten-down value names. The Russell 2000 popped more than 18 per cent for November its best month ever.

Markets

Wall Street closed lower on Monday: The Dow Jones Industrial Average fell 0.9 per cent to 29,639 the S&P 500 lost 0.5 per cent to 3622 and the NASDAQ closed 0.1 per cent lower at 12,199.

European markets closed lower, London’s FTSE lost 1.6 per cent, Paris fell 1.4 per cent and Frankfurt closed 0.3 per cent lower.

Asian markets closed lower, Tokyo’s Nikkei lost 0.8 per cent, Hong Kong’s Hang Seng fell 2.1 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 0.2 per cent fall.

Yesterday, the Australian share market closed 1.3 per cent lower at 6518

Economic news

Today a number of weekly indicators are issued, including CBA data on card spending, the ANZ-Roy Morgan consumer sentiment index and ABS payrolls data. Also on the agenda the Reserve Bank Board meeting. Interest rates are expected to stay on hold. CoreLogic home prices, the AiGroup manufacturing survey as well as building approvals and government financial statistics.

Company news

Santos (ASX:STO) has upped its 2020 production guidance to 87-89 million barrels of oil equivalent and lowered its production cost guidance to $8.00-8.50/ barrel of oil equivalent. The upgrade in production guidance, from 83-88 mmboe, is due to strong operating performance across the base business and represents 15-18 per cent production growth for the year and more than 50 pr cent growth since 2015. Shares in Santos (ASX:STO) 1.44 per cent lower at $6.16 yesterday.


Ex-Div

Aristocrat Leisure (ASX:ALL) is paying 10 cents fully franked
NB Global Corporate Income Trust (ASX:NBI) is paying 0.6963 cents unfranked
Partners Group Global Income Fund (ASX:PGG) is paying 0.6833 cents unfranked

Currencies

One Australian Dollar at 9:00 AM was buying 73.46 US cents, 55.18 Pence Sterling, 76.63 Yen and 61.60 Euro cents.

Commodities

Iron Ore has gained 1.6 per cent to US$131.63.
Iron Ore futures suggest 0.9 per cent fall.
Gold has lost $8.20 to US$1780 an ounce.
Silver was up $0.08 to US$22.72 an ounce.
Oil was down $0.47 to US$45.06 a barrel.