Australia Markets closed

ASX set to open lower after US-NKorea meet

Chris Hutchings
The ASX looks set to open slightly lower, despite a mainly positive lead from Wall Street

The Australian share market looks set to open slightly lower despite a mainly positive lead from Wall Street following the denuclearisation deal struck between the US and North Korea.

At 0700 AEST on Wednesday, the share price futures index was down eight points, or 0.13 per cent, at 6,047.

Stock markets around the world have been mixed following the signing of a denuclearisation deal between US president Donald Trump and North Korean leader Kim Jong-un in Singapore on Tuesday.

Asian markets gained, but Europe's fell with stockholders appearing unimpressed with the lack of detail in the US-North Korea deal.

Wall Street closed mainly positive with US investors apparently more focused on the imminent conclusion of the Federal Reserve's meeting and looking for hints if it would move to raise rates three or four times this year.

The Dow Jones Industrial Average fell 0.01 per cent, to 25,320.73, the S&P 500 gained 0.17 per cent, to 2,786.85 and the Nasdaq Composite added 0.57 per cent, to 7,703.79.

Locally, no major economic or equities news is expected on Wednesday.

However, Reserve Bank of Australia governor Philip Lowe is slated to speak at an Ai Group event in Melbourne.

The Australian market on Tuesday edged higher, supported by energy, health care and consumer-exposed stocks, as US President Donald Trump and North Korean leader Kim Jong-un held talks aimed at denuclearisation of the Korean peninsular.

The benchmark S&P/ASX200 index rose 9.2 points, or 0.15 per cent, to 6,054.4 points, while the broader All Ordinaries added 8 points, or 0.13 per cent, to 6,164.8 points.

Meanwhile, the Australian dollar has slipped as a rise in its US counterpart dents other major currencies.

The local currency was trading at 75.72 US cents at 0700 AEDT on Wednesday, from 76.10 on Tuesday.

CURRENCY SNAPSHOT AT 0700 AEST:

One Australian dollar buys:

* 75.72 US cents, from 76.10 on Tuesday

* 83.58 Japanese yen, from 83.96 yen

* 64.47 euro cents, from 64.67 euro cents

* 56.63 British pence, from 57.00 pence

* 108.11 NZ cents, from 108.22 cents

GOLD:

The spot price of gold in Sydney at 0700 AEST was $US1,295.75 per fine ounce, from $US1,297.65 per fine ounce on Tuesday.

BOND SNAPSHOT AT 0700 AEST:

* CGS 4.50 per cent April 2020, 2.1874pct, unchanged

* CGS 4.75pct April 2027, 2.8059pct, unchanged

Sydney Futures Exchange prices:

* September 2018 10-year bond futures contract at 97.1975 (implying a yield of 2.8025pct), from 97.1825 (implying a yield of 2.8175pct)

* September 2018 3-year bond futures contract at 97.795 (2.205pct), from 97.78 (2.22pct).

(*Bond market closes taken at 1630 AEST previous local session; currency closes taken from 1700 AEST previous local session)