US investors ignore inflation indicator: Aus shares to open higher


The ASX200 is slated to rise at the open, following positive direction from Wall Street overnight.

Despite a hotter-than-predicted hike in the US consumer price index of 0.6 per cent, Stateside investors ignored the inflation indicator and maintained their appetite to upgrade holdings. All US benchmarks gathered strength and edged higher.

US Treasury bond yields for the 10-year note also took a tumble, on the consensus that the current inflation levels are only transitory.

US markets

The Dow Jones Industrial Average closed 0.06 per cent higher at 34466.24 points.
The S&P 500 closed 0.47 per cent higher at 4239.18 points.
The Nasdaq closed 0.78 per cent higher at 14020.33 points.

European markets

London's FTSE closed 0.10 per cent higher, Paris closed 0.26 per cent lower and Frankfurt closed 0.06 per cent lower.

Asian markets

Japan's Nikkei closed 0.34 per cent higher, Hong Kong's Hang Seng closed 0.01 per cent lower and China's Shanghai Composite closed 0.54 per cent higher.

Futures

The futures are pointing to a rise of 1 points.

Yesterday, the S&P/ASX 200 closed 0.44 per cent or 32.30 points higher at 7302.50 points.

Company News

Craft beverage manufacturer Mighty Craft has verified the company’s $47 million cash and scrip deal to acquire cider maker Adelaide Hills Group.

The payment package comprises of a $27 million cash consideration and a $20 million securities issuance to the vendor’s shareholders at 35 cents per share. The price represents a 2-cent discount to Mighty Craft’s last trading price. The transaction will also entitle Adelaide Hills Group to a position on the Might Craft board.

The amalgamation of the two businesses is expected to generate combined turnover of $78.8 million in the next financial year.

Shares in Mighty Craft (ASX:MCL) last traded at 37 cents

Ex-dividends

Two companies are going ex-divided today. Asaleo Care (ASX:AHY) is paying 2 cents fully franked. Cimic Group (ASX:CIM) is paying 60 cents at 20 per cent franking.

Currencies

One Australia dollar is buying 77.53 US cents, 54.71 Pence Sterling, 84.78 Yen and 63.70 Euro cents.

Commodities

Gold is trading $5.00 higher at US$1901.50 an ounce.
Silver is trading 0.11 higher at US$28.15 an ounce.
Iron ore is trading 2.00 per cent higher at US$216.84 a ton.
Iron ore futures are pointing to a rise of 3.09 per cent.
Light crude is trading $0.16 lower at US$70.14 a barrel.
 

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