The Aussie market looks set to open lower later this morning after Wall Street lost ground overnight amid a mixed batch of earnings reports and another big decline by technology giant Apple.
The September SPI futures contract is down 15 points, at 5624.
Apple fell 3.2 per cent, leaving it down more than 12 per cent since its July 21 earnings release with analysts citing fears of slowing growth.
In local economic news today, the Australian Industry Group Australian Performance of Services Index (PSI) is due out and the ANZ has its monthly interest rate review.
The CAPA Corporate Travel & Airport Innovation Summit continues in Sydney while the Financial Services Council holds its annual conference in Brisbane.
In equities news, Skilled Group is expected to post full year results.
– SPI futures down 15pts, at 5624
– AUD at 73.82 US cents, 91.73 Japanese yen, 67.80 Euro cents and 47.40 British pence
– On Wall St, S&P 500 -0.2%, Dow -0.3%, Nasdaq -0.2%
– In Europe, Stoxx 50 -0.4%, FTSE flat, CAC -0.2%, DAX +0.1%
– Spot gold rose $US2.26 or 0.2% to $US1089.05 an ounce
– Iron ore slips 0.6% to $US55.29 per tonne
– Brent crude rose 60 US cents or 1.2% to $US50.12 a barrel
What’s on today:
Euro-area services/composite PMI (July final)
UK services PMI (July)
US ADP employment, trade balance, Markit US composite PMI (July final)
Stocks in focus:
CLSA reiterated its “buy” recommendation on Suncorp after it posted a net profit of $1.13 billion for the year to June – an increase from last year’s $730 million despite the insurance giant recording its worst year for natural disaster events.
Chris Conway, head of research at Australian Stock Report has a “buy” on DUET Group and said: “The outlook for the utility sector is improving and DUET offers an attractive yield. The acquisition of Energy Developments (ENE) offers few synergies but should fund dividend growth over the next few years.”
Macquarie Wealth Management expects modest growth at Brambles in FY15 and remains cautious on a US recovery. It has a neutral recommendation on the stock and a price target of $11.76. “Currency remains a key variable for BXB with the weak AUD continuing to provide valuation support.”