The Australian share market looks set to open slightly in the red following a much greater negative lead from Wall Street which has declined after the Federal Reserve’s interest rate decision.
At 0700 AEST on Thursday, the share price futures index was down five points, or 0.08 per cent, at 6,022.
Global stock markets were mainly gloomy overnight with a slump in shares of telecommunications giant ZTE Corp unnerving Asian market participants, and investors bracing for the Fed’s policy decision later in the day.
A weaker pound supported British export-focused shares, offsetting fresh competition fears for Just Eat and allowing the FTSE100 to close where it started, while Europe was nervous ahead of the US rate decision.
While, Wall Street had a choppy session and fell markedly in comparison after the Fed raised its rate a quarter of a percentage point and projected a faster rate of rises over the rest of 2018.
The Dow Jones Industrial Average fell 0.46 per cent, to 25,202.99, the S&P 500 lost 0.40 per cent, to 2,775.66 and the Nasdaq Composite dropped 0.11 per cent, to 7,695.70.
Locally, in economic news on Thursday, the Australian Bureau of Statistics is due to release labour force data for May.
No major equities news is expected, but all eyes will undoubtedly be on Australian infrastructure giant APA after its shares soared following a $13 billion takeover proposal from a Chinese consortium led by global infrastructure player CK Infrastructure Holdings.
Atlas Iron may also grab some attention after mining magnate Gina Rinehart’s move to secure a takeover blocking stake in the company.
The Australian market on Wednesday closed lower as investors awaited a decision overnight on interest rates from the US Federal Reserve, and the European Central Bank.
The benchmark S&P/ASX200 ended Tuesday down 30.9 points, or 0.51 per cent, at 6,023.5 points, while the broader All Ordinaries index was down 31.7 points, or 0.51 per cent, at 6,133.1 points.
Meanwhile, the Australian dollar has inched a little higher against the US dollar which at first rose, then fell after the Fed’s rate decision.
The local currency was trading at 75.78 US cents at 0700 AEST on Thursday, from 75.69 on Wednesday.
CURRENCY SNAPSHOT AT 0700 AEST:
One Australian dollar buys:
* 75.78 US cents, from 75.69 on Wednesday
* 83.60 Japanese yen, from 83.70 yen
* 64.26 euro cents, from 64.46 euro cents
* 56.65 British pence, from 56.67 pence
* 107.90 NZ cents, from 108.04 cents
The spot price of gold in Sydney at 0700 AEST was $US1,299.07 per fine ounce, from $US1,294.67 per fine ounce on Wednesday.
BOND SNAPSHOT AT 0700 AEST:
* CGS 4.50 per cent May 2021, 2.1715pct, unchanged
* CGS 4.75pct May 2028, 2.7768pct, unchanged
Sydney Futures Exchange prices:
* June 2018 10-year bond futures contract at 97.225 (implying a yield of 2.775pct), from 97.210 (implying a yield of 2.790pct) on Wednesday
* June 2018 3-year bond futures contract at 97.79 (2.21pct), from 97.80 (2.20pct).
(*Bond market closes taken at 1630 AEST previous local session; currency closes taken from 1700 AEST previous local session)