Oil’s overnight rebound fuels ASX to open higher

Market Reports

by David Chau

ASX futures are indicating that the Australian share market will open higher today

Once again, this is despite a mixed lead from Wall Street. The Dow Jones finished in the red, but the S&P 500 and Nasdaq posted record closes.  Most sectors finished in positive territory, with the standout performer being Energy, after oil prices rebounded overnight.

Yesterday, US President Donald Trump unexpectedly fired FBI Director, James Comey. However, that news did not seem to faze investors too much as many still expect the US government to implement its tax reform agenda at some point.

Markets

Wall Street closed mixed this morning: with The Dow Jones Industrial Average was down 0.2 per cent to 20,943, the S&P 500 rose 0.1 per cent to 2,400 and the NASDAQ gained 0.1 per cent to 6,129.

European markets finished higher: London’s FTSE gained 0.6 per cent, while both Paris and Frankfurt were up almost 0.1 per cent each.

Asian markets were mixed: Tokyo’s Nikkei gained 0.3 per cent, Hong Kong’s Hang Seng was up 0.5 per cent, and China’s Shanghai Composite fell 0.9 per cent.

Australia’s ASX 200 finished higher yesterday – gaining 36 points (or 0.6 per cent) to 5,875. On the futures market the SPI has risen 12 points.

Company news

CIMIC Group’s (ASX:CIM) company, CPB Contractors, along with its Alliance partners will deliver three new road building projects for Main Roads Western Australia following a renegotiation of the Roe 8 contract. The WA government expects the total cost of these three projects will be around $276 million. CIMIC’s Alliance partners include Gergiou Group, GHD and WA Limestone, and construction works are expected to begin immediately. Yesterday, CIMIC shares closed 4.81% higher at $40.52.

Currencies

The Australian Dollar at 7:30AM was buying $US73.59 cents, 56.90 Pence Sterling, 84.14 Yen and 67.74 Euro cents.

Commodities

Gold has fallen $2.50 to $US1,219 an ounce.
Silver is up $0.12 to US$16.19 an ounce.
Oil has gained $1.11 to $US47.34 a barrel.

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