Morning markets: US shares edge lower despite oil price rise
US shares ended almost flat as gains for oil were offset by health declines. (Brendan McDermid, file photo: Reuters)
US stocks eased back from fresh record highs despite higher oil prices, but the Australian market looks set to open higher.
Markets at 8:40am (AEST):
- ASX SPI 200 futures +0.2pc to 5,494
- AUD: 76.52 US cents, 58.7 British pence, 78.4 Japanese yen, 69.05 euro cents, $NZ1.072
- US: Dow Jones -0.1pc to 18,529, S&P 500 -0.1pc to 2,181, Nasdaq -0.2pc to 5,213
- Europe: Euro Stoxx 50 +0.3pc to 2,983, FTSE 100 +0.2pc to 6,809, DAX +0.6pc to 10,432
- Commodities: Brent crude +2.1pc to $US45.16 a barrel, iron ore +0.8pc $US61.40 a tonne, gold -0.1pc to $US1,335 an ounce
Health care and consumer stocks lost ground, outweighing gains in energy shares.
The rise in oil prices was driven by news that the Organisation of Petroleum Exporting Countries (OPEC) would be meeting in September, with slim hopes of some production limitations.
IG market analyst Angus Nicholson said certain OPEC members are keen for supply cuts, but are unlikely to convince other members of the cartel.
While a deal is highly unlikely to eventuate, the fact that it is even being mentioned shows how much difficulty the past month’s renewed selloff was causing many struggling OPEC members.
European stocks made gains, with London being driven higher by Barclays Bank and the mining sector, such as Anglo-Australian giant BHP Billiton.
Mr Nicholson said a combination of relaxed policies and restrictions in China and more fiscal stimulus looming from Japan, Britain and the European Union has brightened the commodity outlook.
Good news for commodity prices is good news for the Australian dollar, which picked up ground against most major currencies overnight.
In futures trade, the ASX SPI 200 was up a fifth of a per cent.
Locally, David Jones has announced the sale of its Market Street building in the heart of Sydney for $360 million.
It been bought by Scentre Group – the owner and operator of shopping centre giant Westfield – and the property arm of industry super fund Cbus, and will be redeveloped into luxury apartments, shops and offices.
- Cochlear FY results (8:30am AEST)
- IOOF FY results (8:30am AEST)
- Transurban FY results (8:30am AEST)
- ANZ Q3 trading update (8:30am AEST)
- NAB business survey – July (11:30am AEST)
- Inflation – July (11:30am AEST)
- Industrial production – June (6:30pm AEST)