Oil sinks as Saudi Arabia pushes for recovery: ASX set to open higher

Following soft leads from US markets, the Australian share market looks set to open higher. Oil is the big story this week after a coordinated attack knocked out 5.7 million barrels of daily crude production, or more than half of Saudi Arabia oil output. Brent crude oil jumped the most in history in the previous session. Saudi officials say they had restored just under half the output lost. Treasuries rallied and stocks gained a day before the Federal Reserve in the US is expected to cut interest rates.

Local economic news

Westpac Melbourne Institute will release the leading index for August;

Markets

Wall Street closed higher yesterday: The Dow Jones Industrial Average gained 0.1 per cent to close at 27,111, the S&P 500 closed 0.3 per cent higher at 3006 and the NASDAQ added 0.4 per cent to 8186.

European markets closed mixed: London’s FTSE fell 0.01 per cent, Paris added 0.2 per cent and Frankfurt lost 0.1 per cent.

Asian markets closed mixed: Tokyo’s Nikkei added 0.1 per cent, Hong Kong’s Hang Seng dipped 1.2 per cent and China’s Shanghai Composite fell 1.7 per cent.

Taking all of this into equation, the SPI futures are pointing to a 0.13 per cent gain.

Yesterday, the Australian share market closed 22 points or 0.3 per cent higher at 6695..

Company news

Automotive Holdings Group (ASX:AHG) managing director John McConnell will leave the company on 30th September. The announcement coincides with AP Eagers announcing its merger offer had reached more than 90 per cent acceptance by AHG shareholders and its intention to compulsorily acquire the remaining shares. AP Eagers managing director Martin Ward assumes executive responsibility for the merged group. Mr McConnell joined AHG as CEO on 29 August 2016 and was formally appointed to the role of Managing Director on 1 January 2017. Shares in Automotive Holdings Group (ASX:AHG) closed 4.45 per cent higher at $3.52 yesterday.

Ex – Dividend

Konekt Limited (ASX:KKT) is paying 1 cent fully franked
Pacific Energy (ASX:PEA) is paying 1.5 cents fully franked
Peet Limited (ASX:PPC) is paying 3 cents fully franked
Pacific Smiles Group Ltd (ASX:PSQ) is paying 3.5 cents fully franked
SG Fleet Group Ltd (ASX:SGF) is paying 9.52 cents fully franked
Webjet Limited (ASX:WEB) is paying 13.5 cents fully franked

Currencies

One Australian Dollar at 7:40AM was buying 68.67 US cents, 54.95 Pence Sterling, 74.26 Yen and 62.03 Euro cents.

Commodities

Iron Ore futures suggest a 0.6 per cent fall.
Gold has lost $2.50 to US$1509 an ounce.
Silver has added $0.07 to US$18.09 an ounce.
Oil has dropped $0.48 to US$58.86 a barrel.

Source: Finance News Network