MARKET NEWS

Australian shares are set to open lower
28/06/2017 7:17 AM

The Australian market looks set to open lower following falls on Wall Street's three key indexes with the Nasdaq dropping more than one per cent.

At 0700 AEST on Wednesday, the share price futures index was down 12 points, or 0.2 per cent, at 5,642.

In the US, the tech-heavy Nasdaq, pulled down by sharp falls in tech stocks, led the bourse's decline with stocks falling more sharply after a healthcare bill was delayed in the US Senate, raising fresh questions about President Trump's domestic agenda.

The Dow Jones Industrial Average fell 0.46 per cent, the S&P 500 lost 0.81 per cent and the Nasdaq Composite dropped 1.61 per cent to 6146.62.

Locally, no major economic news is expected on Wednesday.

In equities, Rio Tinto is expected to report the outcome of a shareholder meeting in London to vote on the proposed sale of its Coal & Allied business to Yancoal.

Meanwhile, APRA chairman Wayne Byres will attend an AmCham event in Sydney.

The Australian market on Tuesday closed marginally lower after a shaky start as broad-based losses held back gains in financial and mining stocks.

The benchmark S&P/ASX200 index fell 6 points, or 0.1 per cent, to 5,714.2 points.

The broader All Ordinaries index lost 5.9 points, or 0.1 per cent, to 5,752.5 points..

Meanwhile, the Australian dollar is lower against its US counterpart, and back below 76 US cents, despite the greenback falling in the overnight session.

The local currency was trading at 75.82 US cents at 0700 AEST on Wednesday, from 76.02 on Tuesday.

CURRENCY SNAPSHOT AT 0700 AEST:

CURRENCY ASK BID PREVIOUS

AUD/USD 0.7584 0.7582 0.7582

AUD/JPY 85.22 85.18 85.18

AUD/EUR 0.669 0.6685 0.6685

AUD/NZD 1.0433 1.0425 1.0425

AUD/GBP 0.5919 0.5915 0.5915

GOLD:

The spot price of gold in Sydney at 1700 AEST was $US1,246.82 per fine ounce, from $US1,250.67 per fine ounce on Tuesday.

BOND SNAPSHOT AT 0700 AEST:

* CGS 4.50 per cent April 2020, .7595pct, unchanged

* CGS 4.75pct April 2027, 2.3535pct, unchanged

Sydney Futures Exchange prices:

* August 2017 10-year bond futures contract at 97.52 (implying a yield of 2.48pct), from 97.600 (2.400pct) on Tuesday

* August 2017 3-year bond futures contract at 98.14 (1.86pct), from 98.19pct (1.81pct).

(*Currency closes taken at 1700 AEST previous local session, bond market closes taken at 1630 AEST previous local session)

$A is lower against $US
28/06/2017 6:48 AM

The Australian dollar is lower against its US counterpart, dropping back below 76 US cents.

At 0635 AEST on Wednesday, the Australian dollar was worth 75.83 US cents, down from 76.02 US cents on Tuesday.

Westpac's Imre Speizer said the US dollar had fallen markedly in the overnight session, but that had not benefited the local currency.

"The US dollar index fell sharply, by around 1.1 per cent. That was mainly due to a strong performance by the EUR..., " he said in a Wednesday morning note.

"AUD and NZD didn't benefit much from the US dollar's fall, AUD slipping from 0.7624 to 0.7581, and NZD from 0.7344 (five-month high) to 0.7266."

"The deterioration in risk sentiment (via tech stocks) may have been one factor at play."

But, he still thought the Aussie dollar could lift on Wednesday.

"Despite its subdued behaviour overnight AUD/USD retains potential to push higher to 0.7635."

The local currency is up against the yen but down against the euro.

CURRENCY SNAPSHOT AT 0635 AEST ON WEDNESDAY

One Australian dollar buys:

* 75.83 US cents, from 76.02 on Tuesday

* 85.16 Japanese yen, from 84.88 yen

* 66.86 euro cents, from 67.91 euro cents

(*Currency closes taken at 1700 AEST previous local session)

The Australian market is set to open flat
27/06/2017 7:29 AM

The Australian market looks set to open flat after both the Dow and the S&P 500 closed steady on Wall Street.

At 0700 AEST on Tuesday, the share price futures index was up two points, or 0.04 per cent, at 5,668.

In the US, the S&P 500 and the Dow barely rose as gains were offset by a fall in technology stocks, which also pushed the Nasdaq lower as investors turned to more defensive sectors.

The Dow Jones Industrial Average rose 0.07 per cent, the S&P 500 gained 0.03 per cent, to 2,439.07 while the Nasdaq Composite dropped 0.29 per cent to 6,247.15.

Locally, in economic news on Tuesday, the ANZ-Roy Morgan Consumer Confidence weekly survey is due out.

Reserve Bank of Australia deputy governor Guy Debelle is slated to appear, via video link, at the Global FX Code of Conduct launch in Singapore.

No major equities news is expected.

The Australian market on Monday closed steady amid modest gains from the heavyweight banking and mining sectors.

The benchmark S&P/ASX200 index gained 4.3 points, or 0.08 per cent, to 5,720.2 points.

The broader All Ordinaries index rose 3.8 points, or 0.07 per cent, to 5,758.4 points.

Meanwhile, the Australian dollar had led all three of the commodities currencies higher against the US dollar as oil prices ended the day in positive territory, BK Asset Management's managing director of FX Strategy Kathy Lien said.

The local currency was trading at 75.82 US cents at 0700 AEST on Tuesday, from 75.71 on Monday.

CURRENCY SNAPSHOT AT 0700 AEST:

CURRENCY ASK BID PREVIOUS

AUD/USD 0.7588 0.7582 0.7582

AUD/JPY 84.88 84.79 84.79

AUD/EUR 0.6788 0.6779 0.6779

AUD/NZD 1.0417 1.0395 1.0395

AUD/GBP 0.5965 0.596 0.596

BOND SNAPSHOT AT 0700 AEST:

* CGS 4.50 per cent April 2020, 1.7704pct, unchanged

* CGS 4.75pct April 2027, 2.3751pct, unchanged

Sydney Futures Exchange prices:

* August 2017 10-year bond futures contract at 97.605 (implying a yield of 2.395pct), from 97.58 (implying a yield of 2.420pct) on Monday

* August 2017 3-year bond futures contract at 98.18 (1.82pct), unchanged.

(*Currency closes taken at 1700 AEST previous local session, bond market closes taken at 1630 AEST previous local session)