Dow Jones drops 700 points: ASX set to open lower

Market Reports

by Melissa Darmawan

The Australian share market is set to open lower this morning amid a fall on Wall Street. The Dow saw its biggest drop in three months while European stocks also posted their biggest decline in months. The US Federal Reserve kept overnight interest rates near zero while back home, the Australian dollar lost over one per cent.

Economic news outlook

The ABS will issue the international trade price indexes as well as more detail of the December labour market results including regional estimates of unemployment.


Wall Street closed lower yesterday: The Dow Jones Industrial Average lost 2.1 per cent to 30,303, the S&P 500 fell 2.6 per cent to 3751 and the NASDAQ closed 2.6 per cent lower at 13271

European markets closed lower, London’s FTSE lost 1.3 per cent, Paris fell 1.2 per cent and Frankfurt closed 1.8 per cent lower.

Asian markets closed mixed, Tokyo’s Nikkei added 0.3 per cent, Hong Kong’s Hang Seng lost 0.3 per cent and China’s Shanghai Composite closed 0.1 per cent higher.

Taking all of this into equation, the SPI futures are pointing to a 1.1 per cent fall.

Yesterday, the Australian share market closed 0.7 per cent lower at 6781.

Company news

The a2 Milk Company (ASX:A2M) says that Chief Growth and Brand Officer, Susan Massasso, has advised of her intention to step down from her role in April. Having previously announced her intention to step down in late 2019, Susan agreed to remain with the Company and assist with the transition to a new CEO. Since that time Susan has added new senior Consumer Insights, Global Brand Management, Communication, and Innovation roles to her team, to enhance the capability and capacity within the business. Shares in A2 Milk Company (ASX:A2M) closed 4.61 per cent higher at $10.66 yesterday.


Gryphon Capital Income Trust (ASX:GCI) is paying 0.75 cents unfranked
Perpetual Credit Income Trust (ASX:PCI) is paying 0.2989 cents unfranked
Qualitas Real Estate Income Fund (ASX:QRI) is paying 0.8692 cents unfranked


One Australian Dollar at 8:20 AM was buying 76.54 US cents, 55.95 Pence Sterling, 79.69 Yen and 63.21 Euro cents.


Iron Ore has gained 0.9 per cent to US$166.59.
Iron Ore futures suggest 0.5 per cent fall.
Gold has lost $10.70 to US$1844 an ounce.
Silver was down $0.28 to US$25.26 an ounce.
Oil was up $0.06 to US$52.67 a barrel.

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