Dow Jones lifts 227 points ahead of US mid-term elections, ASX to open flat



November 06, 2018 07:28:47

The local share market is expected to begin the day without much traction on Melbourne Cup day.

ASX futures are pointing to a relatively flat opening (+0.1pc) in early trade.

The Australian dollar has risen slightly to 72.15 US cents, but fallen sharply to 55.3 British pence and 63.2 Euro cents.

In economic news, the Reserve Bank will decide on interest rates at 2:30pm (AEDT).

The RBA will keep rates on hold at the record low of 1.5 per cent — like it has done for the past two years — particularly with wages growth near record lows, and after last week’s disappointing inflation and retail sales figures.

Economists are not expected a rate hike until at least 2019/2020.

On Wall Street, investors were cautious about technology stocks ahead of the United States mid-term elections.

Most of the main indices are higher except for the Nasdaq, which fell 0.25 per cent to 7,339. The tech-heavy index was weighed down by a sharp fall in Apple (-2.8pc) and Amazon (-2.2pc) shares.

The benchmark S&P 500 rose 0.7 per cent to 2,742.

The industrial-skewed Dow Jones index jumped 227 points, or 0.9 per cent, to 25,498.

And after falling for the last five days, the price of Brent crude oil lifted sharply to $US72.83 a barrel now that America has formally re-imposed sanctions on Iran.

More to come.







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