US stocks decline in fear of rising interest rates: ASX to open lower

Market Reports

by Michael Luu

The ASX200 is slated for a negative start, as US stocks declined on Monday in fear of rising interest rates and possible inflation. China’s primary lending reference rate, the loan prime rate (LPR), has maintained its position at 3.85 per cent for the year and 4.65 per cent for the 5-year period. Meanwhile, European markets experienced lackluster trading activity, following cautious trade in markets around the world.  Expectations of high demand for gold, oil iron ore and base metals has driven commodity prices upwards.

Local Economic news

We are expecting strong news flow today. Commonwealth Bank (ASX:CBA) Group economists will release weekly credit and debit card spending data while ANZ-Roy Morgan release the weekly consumer sentiment survey. The ABS releases the preliminary January data on exports and imports of goods.

Figures from around the globe

Wall Street closed mixed yesterday: The Dow Jones Industrial Average added 0.1 per cent to close at 31,522, the S&P 500 shed 0.8 per cent to 3877 and the NASDAQ closed 2.5 per cent lower at 13,533.

European markets closed lower: London’s FTSE fell 0.2 per cent, Paris lost 0.1 per cent and Frankfurt closed 0.3 per cent lower.

Asian markets closed mixed: Tokyo’s Nikkei added 0.5 per cent. Hong Kong’s Hang Seng fell 1.1 per cent and China’s Shanghai Composite fell 1.5 per cent.

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

Yesterday, the Australian share market closed 0.2 per cent lower at 6781.

Company News

Crown Resorts’ (ASX:CWN) integrity as a casino license holder in Victoria will come under scrutiny by a new royal commission.

The Victorian government has established the investigative task force, following the NSW inquiry’s verdict that the gaming corporation was not eligible to hold a casino license. Yesterday, media-buying entrepreneur Harold Mitchell became the 4th board director to quit on the back of the report’s findings.

Former federal court judge and senior barrister Raymond Finkelstein QC has been selected to lead the investigation as commissioner.

Shares Crown Resorts (ASX:CWN) closed 0.5 per cent lower at $10.20


Amcor PLC (ASX:AMC) is paying 15.21 cents unfranked
Australian United Investment Company (ASX:AUI) is paying 17 cents fully franked
Challenger Limited (ASX:CGF) is paying 9.5 cents fully franked
Domino's Pizza Enterprises (ASX:DMP) is paying 88.4 cents 50 per cent franked
Diversified United (ASX:DUI) is paying 7 cents fully franked
IPH Limited (ASX:IPH) is paying 14 cents franked
Moelis Australia Ltd (ASX:MOE) is paying 10 cents fully franked
Reckon Limited (ASX:RKN) is paying 2 cents fully franked
Santos Ltd (ASX:STO) is paying 6.4491 cents fully franked
Wesfarmers Limited (ASX:WES) is paying 88 cents fully franked

One Australian Dollar at 8:15 AM was buying 79.14 US cents, 56.29 Pence Sterling, 83.17 Yen and 65.13 Euro cents.

Iron Ore has added 1.4 per cent to $175.96.
Iron Ore futures suggest a 0.1 per cent gain.
Gold has gained $30.30 to US$1808 an ounce.
Silver has added $1.00 to US$28.30 an ounce.
Oil was up $2.25 to US$61.49 a barrel.

Our first investor event for 2021 is today, with 5 companies starting 12:30pm details including registration at the link


Are you a 708 sophisticated investor?

A sophisticated investor is defined under Section 708 of the Corporations Act (net assets of $2.5 million or annual incomes in excess of $250,000).

They are eligible to receive information regarding wholesale investment opportunities that are not available to regular or retail investors.

Please subscribe if you would like to be alerted to these types of opportunities.