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ASX futures down 02 Westpac Pacific bank sale denied

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Summary
  • ASX futures are down 12 points or 0.2% to 7423 at 6.37am. On Monday the index gained 18.6 points to close at 7425.2 points, up 0.3%
  • On Wall Street the S&P 500 gained 0.2%, the Dow Jones was up 0.8%, but the Nasdaq declined 0.1%
  • Iron ore prices slipped 0.4% to $US129.71 a tonne, while Brent crude gained 1.1% to $US73.72 a barrel and US oil increased 1.5% to $US70.73 a barrel
  • The Australian dollar is at 73.72 US cents earlier this morning
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  • Westpac has confirmed that the sale of its Pacific businesses has been blocked by regulators.

    The sale of Westpac Fiji and Westpac’s 89.91% stake in Westpac Bank PNG Limited â€" to ASX-listed Kina Securities Limited for up to $420 million was subject to regulatory approvals in both Fiji and Papua New Guinea.

    Westpac sold its operations in Samoa, the Cook Islands, the Solomon Islands, Vanuatu and Tonga to Bank South Pacific for $125 million. But its PNG and Fiji operations remain in limbo.

    Westpac sold its operations in Samoa, the Cook Islands, the Solomon Islands, Vanuatu and Tonga to Bank South Pacific for $125 million. But its PNG and Fiji operations remain in limbo.Credit:Photo: Michele Mossop

    In July, Papua New Guinea’s Independent Consumer and Competition Commission (ICCC) released a draft determination indicating it proposed to deny authorisation to Kina Bank for the proposed acquisition.

    The ICCC has now released its final determination confirming it has denied authorisation.

    “Westpac acknowledges the ICCC’s determination and will continue to operate these businesses while it reviews the impact on the sale to Kina Bank,” the bank says.

    The proposed sale was part of Westpac’s strategy to simplify its operations and focus on banking in Australia and New Zealand.

    ASX futures down 12 points or 0.2% to 7423 at 6.37am AEST

  • Australian dollar at 73.72 US cents at 6.47am AEST
  • Wall Street S&P 500 +0.2%, Dow Jones +0.8%, Nasdaq -0.1%
  • Europe: Stoxx 50 +0.5%, FTSE +0.6%, DAX +0.6%, CAC +0.2%
  • Spot gold +0.3% at $US1793.45 per ounce
  • Brent crude +1.1% to $US73.72 a barrel
  • US oil +1.5% to $US70.73 a barrel
  • Iron ore -0.4% to $US129.71 a tonne
  • 10-year yield: US 1.32% Australia 1.27% Germany -0.33%

    • A late-afternoon burst of buying helped stock indexes close mostly higher on Wall Street on Monday (US time), snapping a five-day losing streak for the S&P 500.

    The benchmark index shook off an afternoon slump to finish 0.2 per cent higher. Banks, energy companies and communication stocks accounted for much of the index’s broad gains. Health care and utilities stocks fell. The S&P 500 was coming off its biggest weekly drop since June.

    Despite the rally, the ASX is set to open lower with futures at 6.37am AEST pointing to a fall of 12 points, or 0.2 per cent, at the open.

    Oil prices have firmed up as hurricane season keeps US production muted and producers look for rising demand post-pandemic.

    Oil prices have firmed up as hurricane season keeps US production muted and producers look for rising demand post-pandemic. Credit:AP

    The price of US crude oil rose 1 per cent and crossed back above $US70 ($95) per barrel. It hasn’t closed above that level since early August. Natural gas prices jumped 5.9 per cent and are at their highest levels since the middle of 2014. The solid gains helped lift energy stocks, including a 2.6 per cent rise for Exxon Mobil and a 7.2 per cent jump for Marathon Oil.

    Stocks have traded in a narrow range for several weeks as most investors are sitting on the sidelines waiting to get a fuller understanding of where the economy is headed and how the pandemic is impacting corporations.

    “Interestingly it’s all still within this narrow band that we’ve been seeing in the markets” said Greg Bassuk, CEO of Axs Investments. “Investors are still looking to hang their hats on more outsized or more significant news relating to the economic recovery.”

    The S&P 500 rose 10.15 points to 4,468.73. Despite its pullback last week and modest gain on Monday, the index remains just 1.5 per cent below the all-time high it set on September 2.

    The Dow Jones Industrial Average rose 261.91 points, or 0.8 per cent, to 34,869.63, while the Nasdaq slipped 9.91 points, or 0.1 per cent, to 15,105.58.

    Bond yields edged lower. The yield on the 10-year Treasury fell to 1.32 per cent from 1.34 per cent late Friday.

    Wall Street will have several key pieces of data to review this week. The Labor Department will release its consumer price index for August on Tuesday, which will give investors another update on inflation as businesses and consumers face higher prices because of supply constraints.

    The Commerce Department will release retail sales data for August on Thursday to a market still trying to determine the full impact of rising COVID-19 cases on consumer spending.

    AP

    Hello and welcome to today’s Markets Live!

    There is a trickle of economic data this morning with NAB Business conditions and property prices. RBA governor Philip Lowe is giving a speech called Delta, the Economy and Monetary Policy in the early afternoon, and there is a committee hearing into housing affordability in Canberra featuring the RBA, Treasury, and Council of Social Services.

    Your editors today are Colin Kruger and Lucy Battersby.

    This blog is not intended as financial advice.

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