Oil boosts energy stocks: ASX to open firmer

Market Reports

by Rachael Jones

Australian shares are set to open firmer today as US stocks advanced as energy shares rallied with oil on speculation crude supplied may not keep up with demand. West Texas oil rose above $71 per barrel following President Donald Trump's decision this week to leave a nuclear deal with Iran. Oil hit its highest level in 3-1/2 years as investors worried the increased risks of conflict in the Middle East would curtail global oil supplies. Ten-year Treasury yields topped 3 per cent.
Gains here were broad, with all but the utilities and telecom sectors advancing. Gold is down as is iron ore.

Figures from around the globe

Wall Street closed higher yesterday. The Dow Jones Industrial Average added 0.8 per cent to close at 24,543, the S&P 500 closed almost 1 per cent higher at 2,698 and the NASDAQ gained 1 per cent to close at 7340.

European markets closed higher yesterday: London’s FTSE closed up 1.3 per cent, Paris added 0.2 per cent and Frankfurt gained 0.2 per cent.

Asian markets closed mixed: Tokyo’s Nikkei closed 0.4 per cent lower, Hong Kong’s Hang Seng gained 0.4 per cent, and China’s Shanghai Composite lost 0.1 per cent.

Taking all of this into equation, the ASX futures are pointing to a 24 pts gain. Yesterday, the Australian share market closed higher with the S&P/ASX 200 Index closing 16 points higher to 6108.

Company news 

Mining contractors NRW Holdings (ASX:NWH) has now executed a formal contract in relation to the deal with Baralaba North Coal Mine in Queensland. The size of the contract had been reported to be $420 million. The contract between NRW’s wholly owned subsidiary, Golding Contractors Pty Ltd and Wonbindi Coal includes overall mine planning; the removal of topsoil; drilling, blasting, loading, hauling and handling coal. The contract will be complete in 2021. 

Shares in NRW Holdings (ASX:NWH) closed 0.79 per cent lower at $1.26 yesterday.

Currencies

One Australian Dollar at 7:40AM was buying US74.63 cents, 55.09 Pence Sterling, 81.88 Yen and 62.98 Euro cents.

Commodities

Iron ore futures are pointing to a 0.1 per cent drop.
Gold has lost $0.90 to $US1313 an ounce.
Silver has added 4c to $US16.52 an ounce.
Oil has gained $2.18 to $US71.24 a barrel.

Cryptocurrencies

The three most traded cryptocurrencies are trading mixed: Bitcoin has gained 0.5 per cent to US$9282, Ethereum fell 0.3 per cent to US$747 and Bitcoin Cash has added 3.2 per cent.  

Rachael Jones

Finance News Network
Rachael comes to FNN after working for Fairfax Media covering international breaking news, including the global economy and politics. She joined FNN in February 2018. She has reported on Australia’s finance news for various organisations since 2000 and has also interviewed a number of key business players, including Bill Gates. Rachael has also worked across a number of countries, including the UK and the US.