Good morning and welcome to the Morning Outlook. I’m Rachael Jones reporting live
from Kalkine TV Sydney studio. The Australian share market is set to fall at open. According
to the latest SPI futures, the ASX 200 is likely to open 26 points or 0.35% lower.
Yesterday the Australian sharemarket clawed back some of its losses in the last hour of trade.
At the closing bell, the S&P/ASX 200 was 0.3 per cent or 20 points lower at 7,236.
Across the sectors, 8 out of 11 closed in the red. Consumer staples were the biggest drag,
down 1.9 per cent, followed by utilities, down 1.4 per cent, then real estate, down 1 per cent.
Meanwhile, materials closed 0.7 per cent higher as the best-performing sector. Automotive company
GUD (ASX:GUD) closed almost 8 per cent lower as the worst-performing stock, after returning from
its trading halt today. Health imaging company ProMedicus (ASX:PME) closed 7.2 per cent lower,
despite not releasing any company announcements. Crown Resorts has dismissed a takeover offer from
US private equity Blackstone for $12.50 per share but has offered the fund manager an exclusive look
at its books to help form a better offer. The Crown Board is of the view that the Proposal
does not represent compelling value for Crown shareholders. Crown says there is no certainty
that the discussions between Crown and Blackstone will result in a revised proposal from Blackstone.
SCA Property Group has established a new Joint Venture with an affiliate of Singapore-based
GIC that will invest in established metropolitan convenience retail centres across Australia.
The new unlisted vehicle, to be known as the SCA Metro Convenience Shopping Centre Fund.
Subject to FIRB approval, GIC will hold an 80% equity interest in the JV.
Downer EDI has completed the sale of its Otraco business to Bridgestone Mining
Solutions Australia. The sale price represents an enterprise value of $79 million. Downer designs,
builds and sustains assets, infrastructure and facilities and we are the leading provider of
integrated services in Australia and New Zealand. Bridgestone Mining Solutions Australia offers
comprehensive pit-to-port solutions for the mining, industrial and construction industries.
Now it’s time for a short break – but stay tuned for more news set to effect the trading day.
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Welcome back to the Morning Outlook report. Over to the
US and they have identified their first known COVID case caused by the Omicron variant,
making investors jittery. On Wall Street, the Dow Jones Industrial Average slid 1.34%, the S&P
500 fell 1.18% and the NASDAQ lost 1.83%. MSCI's all-country world index closed down 0.26% after
earlier trading 1.8% higher. The broad STOXX Europe 600 closed up 1.7%, with Germany's DAX
gaining 2.5% and France's CAC40 adding 2.4.%. Oil prices slipped as concerns over a looming
supply glut weighed on prices. Brent crude fell 36 cents to settle at US$68.87 a barrel. US crude
futures fell 61 cents to settle at US$65.57 a barrel. Gold prices rose due to an increased
demand for safe haven assets amid Omicron-induced volatility. US gold futures settled up 0.4%
at US$1,784.30 an ounce. Meanwhile, Chinese coking coal and coke futures advanced on Wednesday,
buoyed by supply concerns, as coal imports from Mongolia were disrupted by the recent outbreak of
the Omicron coronavirus variant. The benchmark iron ore futures on the Dalian exchange for
January delivery, jumped 1.6% to 624 yuan a tonne at close. That’s all for our Morning
Outlook report here on Kalkine TV. Have a great day trading and stay tuned for more market updates
and economic news live throughout the day. This is Rachael Jones signing off for now.