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Aust shares look set to open lower

Chris Hutchings
AAP

Australian shares look set to open go against the grain of international markets an open lower

The Australian share market looks set to open lower, ignoring widespread optimistic sentiment following the passage of the Republican tax reform bill through the US Senate,

At 0700 AEDT on Tuesday, the share price futures index was down 17 points, or 0.28 per cent, at 5,979.

In the US, the Dow Jones Industrial Average and the S&P500 achieved record highs, before slipping back in late afternoon trading, as investors flocked to stocks believed to benefit most from the changed tax regime.

But those moves came at the expense of the tech-heavy Nasdaq.

At 1510 pm Monday EST (0710 Tuesday AEDT), the Dow Jones Industrial Average was up 0.59 per cent, the S&P 500 had gained 0.23 per cent, but the Nasdaq Composite was down 0.67 per cent.

Locally, in economic news on Tuesday, the Reserve Bank of Australia holds its monthly board meeting and announces its interest rate decision, while RBA Assistant Governor (Business Services) Lindsay Boulton is slated to speak at the High Security Printing Asia 2017 conference in Melbourne.

The Australian Bureau of Statistics releases September's current account balance figures as well as October's retail trade data.

The Ai Group's Performance of Services Index for November is due out, as is the ANZ-Roy Morgan Consumer Confidence weekly survey.

The BankWest First Time Home Buyers Report which shows suburb-by-suburb nation-wide how much the average first time buyer needs to save for a deposit on their first home and how long it will take to save that amount, is also expected.

In equities news, CSL is slated to give an investor briefing on research and development, while BHP chief executive Andrew Mackenzie is scheduled to speak at the Melbourne Mining Club.

The Australian market on Monday closed steady, as regulatory risk weighed on the country's major banks and surging iron ore futures rallied the miners.

The benchmark S&P/ASX200 index fell 4.2 points, or 0.07 per cent, to 5,985.6 points

The broader All Ordinaries index lost 4.9 points, or 0.08 per cent, to 6,070.6 points

Meanwhile, the Australian dollar has slipped fractionally against a stronger US dollar.

The local currency was trading at 75.95 US cents at 0700 AEDT on Tuesday, from 75.97 on Monday.

CURRENCY SNAPSHOT AT 0700 AEDT:

One Australian dollar buys:

* 75.95 US cents, from 75.97 on Monday

* 85.52 Japanese yen, from 85.695 yen

* 64.06 euro cents, from 64,01 euro cents

* 56.38 British pence, from 56.43 pence

* 110.91 NZ cents, from 110.94 cents

GOLD:

The spot price of gold in Sydney at 0700 AEDT was $US1,275.32 per fine ounce, from $US1,274.43 per fine ounce on Monday.

BOND SNAPSHOT AT 0700 AEDT:

* CGS 4.50 per cent April 2020, 1.8552pct, unchanged

* CGS 4.75pct April 2027, 2.5042pct, unchanged

Sydney Futures Exchange prices:

* December 2017 10-year bond futures contract at 97.445 (implying a yield of 2.555pct), from 97.44 (implying a yield of 2.56pct) on Monday

* December 2017 3-year bond futures contract at 98.035 (1.965pct), unchanged.

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