The Australian Securities Exchange is set to end the trading week on a positive note as index futures flag a higher opening, defying the trend of major United States stock indices which fell on Thursday (Friday AEDT).
At 9:05 am AEDT (10:05 pm GMT ) the S&P/ASX200 March share price index (SPI) contract was trading 16 points (0.19%) higher than the previous settlement at 8,304.
U.S. stocks fell sharply on Thursday as giant retailer Walmart’s weaker-than-expected outlook comments prompted worries about company earnings and the growth of the American economy.
The Dow Jones Industrial Average dropped 1%, the S&P 500 slid 0.4% and the Nasdaq Composite lost 0.5% as falls in Walmart stock spilled over into other retailers with Target and Costco losing ground.
A stronger start on the ASX would reverse the pattern of the first four days when the Australian benchmark index went backwards.
The S&P/ASX200 fell 1.2% to 8,322.8 as seven of 11 sectors ended lower on Thursday, including real estate, which was affected by a drop in Goodman Group after it announced a mammoth $4 billion capital raising.
The profit reporting season continues today with results from Block, Guzman y Gomez, Inghams, Latitude, Michael Hill, Newmont and QBE Insurance, while Reserve Bank of Australia Governor Michele Bullock is to appear before a parliamentary committee, days after the central bank’s official interest rate cut.
Burrell Stockbroking wealth adviser Adam Dight said corporate results so far had been in line with to better than forecast.
“Almost all of the good companies and those the market would call blue chips have been fine to excellent,” he said.
“It’s those quiet companies that don’t say much during the year that have (fallen sharply). Nobody knows what they do anyway. It’s hard where you have a complicated sector.
“It’s technical so you need to engage with the market more often. You need to tell everyone how you are going.”
On the fixed income markets, Australian Treasury 10-year bond yields rose 0.07% to 4.523% and two-year rates were flat at 3.928%.
