Fed signals no rate hikes in 2020: Aus shares to open lower

The local share market looks set to open lower this morning despite stocks closing slightly higher on Wall Street yesterday after the Federal Reserve signalled it is not likely to increase rates in 2020. The Fed kept interest rates unchanged on Wednesday, following three decreases in a row. Following the announcement treasury yields fell broadly. The benchmark 10-year rate slid to 1.781 per cent while the 2-year yield fell to 1.611 per cent. Wednesday’s announcement comes on the back of strong economic data. U.S. jobs grew by 266,000 in November, easily topping a Dow Jones estimate of 187,000. Wall Street also kept an eye on the trade front as there continues to be no clear signals that the U.S. and China will reach an agreement over trade that could stop or reduce the current level of tariffs.

Local economic news

Today the ABS releases the international trade data for October. Retail trade data is also issued and will be closely monitored by economists for signs of improvement ahead of Christmas trading.

Markets

Wall Street closed higher yesterday: The Dow Jones Industrial Average closed 0.1 per cent higher at 27,911, the S&P 500 gained 0.3 per cent to 3142 and the NASDAQ added 0.4 per cent to 8654..

European markets closed higher: London’s FTSE added 0.03 per cent, Paris gained 0.2 per cent and Frankfurt rose 0.6 per cent.

Asian markets closed mixed: Tokyo’s Nikkei drop 0.1 per cent, Hong Kong’s Hang Seng gained 0.8 per cent and China’s Shanghai Composite closed 0.2 per cent higher.

Locally, the SPI futures are pointing to a 0.4 per cent fall.

Yesterday, the Australian share market closed 46 points or 0.7 per cent higher at 6753.

Company news

Work place solutions company Damstra Holdings (ASX:DTC) has entered into an asset sale agreement to acquire the Scenario Advantage Workforce business (Scenario) from the Projection Group1. Total consideration of $4m will be funded from Damstra’s existing cash reserves. Scenario currently generates unaudited annual recurring revenue of approximately $1.3m, Scenario provides workplace management solutions to the mining and utility industries. Shares in Damstra Holdings (ASX:DTC) closed 2.8 per cent lower at $1.05 yesterday.

Ex-Dividends

Select Harvests (ASX:SHV) is paying 20 cents fully franked
Tap Oil Limited (ASX:TAP) is paying 2.5 cents fully franked

Currencies

One Australian Dollar at 8:30 AM was buying 68.79 US cents, 52.15 Pence Sterling, 74.67 Yen and 61.80 Euro cents.

Commodities

Iron Ore has gained 1.2 per cent to US$94.67.
Iron Ore futures suggest a 0.7 per cent fall.
Gold has gained $12 to US$1480 an ounce.
Silver has added $0.22 to US$16.93 an ounce.
Oil has fallen $0.40 to US$58.84 a barrel.

Source: Finance News Network