ASX to rise despite Wall Street earnings being hit by US-China tariffs

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Australian shares are set to open moderately higher as Wall Street managed to post a minor gain, despite being weighed down by disappointing earnings from its major companies.

AUD: 68.54 US cents, 53.04 British pence, 61.58 euro cents, 74.49 Japanese yen, $NZ1.07Europe: FTSE 100 +0.7pc at 7,261, DAX +0.3pc at 12,798, CAC -0.1pc at 5,653, Euro Stoxx 50 flat at 3,608

Commodities: Brent crude +2.2pc at $US61.04/barrel, spot gold +0.3pc at $US1,491.46/ounce, iron ore +0.6pc at $US87.18/tonneThe Australian dollar, meanwhile, is buying 68.54 US cents.The broader S&P 500 rose 0.3 per cent to 3,004 and is hovering near its record high.Texas Instruments shares tumbled 7.5 per cent after the chipmaker projected fourth-quarter revenue below estimates, citing weakened demand in part from US-China trade tensions. It was the biggest drag on the US market.

Boeing shares lifted by 1 per cent after the aerospace company reported a 53 per cent drop in quarterly profit.Caterpillar's stock jumped 1.2 per cent despite the heavy machinery maker reporting earnings well short of Wall Street estimates and cutting its full-year profit outlook. Weakened demand in China dragged down Caterpillar's sales in Asia. But the company also said tariffs stemming from the US-China trade war would have a smaller impact on its business than previously forecast.

Facebook shares advanced 2.1 per cent even as its chief executive Mark Zuckerberg was grilled by US Congress on election interference, privacy and the company's planned digital currency Libra — which he concedes is a"risky project".Spot gold has lifted to $US1,491.44 an ounce.

 

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Perhaps Trump’s greatest achievement is taking on China. Australia dropped the ball decades ago.

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