Volatile end to the week on Wall St on US China trade tensions: Aus shares to open lower

Australian shares are set to open lower following ongoing trade tensions between the US and China. Stocks fell in a volatile session on Friday on news that US president Donald Trump is considering limits on US investment into China and is contemplating delisting US-listed shares of Chinese companies.
Shares of Alibaba plunged on the latest U.S.-China headlines, falling 5.1 per cent and posting its worst day since May. Other Chinese stocks such as Baidu and JD.com also traded lower.

Back home the key focus this week will be the RBA meeting tomorrow. Economists are expecting the cash rate to be cut to 0.75 per cent.

Local economic news

It’s a busy week for local economic news, today the Reserve Bank Data on private sector credit. On Tuesday the Reserve Bank Board hands down its interest rate decision and AiGroup and Commonwealth Bank release Separate survey results of purchasing managers and the ABS releases August data on building approvals. On Thursday and the ABS issues the August international trade figures. Finally on Friday the ABS issues retail spending figures for August and the Reserve Bank issues the financial Stability Review.

Markets

To the figures from around the globe: Wall Street closed lower on Friday: The Dow Jones Industrial Average lost 0.3 per cent to close at 26,820, the S&P 500 lost 0.5 per cent to close at 2962 and the NASDAQ fell 1.1 per cent to 7940.

European markets closed higher on Friday: London’s FTSE added over 1 per cent, Paris gained 0.4 per cent and Frankfurt closed 0.8 per cent higher.

Asian markets closed mixed on Friday: Tokyo’s Nikkei fell 0.8 per cent, Hong Kong’s Hang Seng fell 0.3 per cent and China’s Shanghai Composite closed higher, up 0.1 per cent.

Taking all of this into equation, the SPI futures are pointing to 0.2 per cent drop. On Friday, the Australian share market closed 39 points (0.6 per cent) higher at 6716..

Company news

IOOF subsidiary AET has been found liable for breaching its duties as a trustee. In a judgment in the Supreme Court of NSW.The judge ordered that Mr Kerr is entitled to recover equitable compensation from AET in the amounts sought by him. IOOF is currently considering this with its insurers. IOOf says the maximum exposure to IOOF, net of insurance proceeds, is approximately $16.5 million. IOOF is considering all available legal options and expects to appeal this judgement. Shares in IOOF Holdings (ASX:IFL) closed 0.3 per cent higher to $6.47 on Friday.

Ex Dividends

Briscoe Group Limited (ASX:BGP) is paying 7.8952 cents unfranked
Bathurst Resources Ltd (ASX:BRL) is paying 0.255 cents unfranked
CI Resources Limited (ASX:CII) is paying 1.5 cents fully franked
Eureka Group Holdings Ltd (ASX:EGH) is paying 1 cent unfranked
Global Value Fund Ltd (ASX:GVF) is paying 2.9 cents fully franked
Imdex Limited (ASX:IMD) is paying 1.4 cents fully franked
MCP Income Opportunities Trust (ASX:MOT) is paying 3.57 cents unfranked
MCP Master Income Trust (ASX:MXT) is paying 0.79 cents unfranked
Stanmore Coal Limited (ASX:SMR) is paying 8 cents fully franked

Currencies

One Australian Dollar at 7:40 AM was buying 67.66 US cents, 55.06 Pence Sterling, 73.08 Yen and 61.82 Euro cents.

Commodities

Iron Ore has lost 0.1 per cent to US$90.85.
Iron Ore futures suggest a 2.7 per cent gain.
Gold has dropped almost $9.00 to US$1506 an ounce.
Silver was down 42 cents to US$17.65 an ounce.
Oil has dropped $0.50 to US$55.91 a barrel.

Source: Finance News Network