Rio’s (ASX:RIO) iron ore shipments reduced due to cyclone: ASX set for a flat start

Market Reports

by Rachael Jones

Wall Street was closed yesterday due to President’s Day. The Australian share market looks set to open flat this morning. European stocks closed higher as China’s central bank announced fresh policy to shield its economy from Coronavirus. Meanwhile, Apple reports they will not meet their quarterly revenue forecast because of restricted supply of its iPhones and lower Chinese demands as a result of the virus outbreak. A busy reporting season continues with results expected today from companies such as BHP, Cochlear, Coles Group and Monadelphous.

Local economic news 

RBA to release minutes from latest board meeting

Markets

Wall Street was closed yesterday:

European markets closed higher: London’s FTSE gained 0.3 per cent, Paris added 0.3 per cent and Frankfurt also gained 0.3 per cent.

Asian markets closed mixed: Tokyo’s Nikkei fell 0.7 per cent, Hong Kong’s Hang Seng was up 0.5 per cent and China’s Shanghai Composite gained 2.3 per cent.

Taking all of this into equation, the SPI futures are pointing to a flat start.

Yesterday, the Australian share market closed 0.1 per cent lower at 7125.

Company news 

Rio Tinto’s (ASX:RIO) iron ore operations in the Pilbara, Western Australia, are progressively resuming following the passing of Tropical Cyclone Damien. The cyclone caused infrastructure damage across their entire Pilbara network, including impact to access roads, electrical and communications infrastructure and accommodation. All mine sites experienced some disruption and will take time to return to normal operations. As a result, Rio Tinto’s Pilbara shipments in 2020 are now expected to be between 324 million tonnes and 334 million tonnes (100 per cent basis) versus previous guidance of between 330 million tonnes and 343 million tonnes. Shares in Rio Tinto (ASX:RIO) closed 0.2 per cent higher at $97.84 yesterday.

Ex-Dividends

Computershare Limited (ASX:CPU) is paying 23 cents 30 per cent franked
Insurance Australia Group Ltd (ASX:IAG) is paying 10 cents 70 per cent franked
IPH Limited (ASX:IPH) is paying 13.5 cents fully franked
Magellan Financial Group Ltd (ASX:MFG) is paying 92.9 cents 75 per cent franked

Currencies

One Australian Dollar at 8:35 AM was buying 67.14 US cents, 51.65 Pence Sterling, 73.79 Yen and 61.98 Euro cents.

Commodities

Iron Ore has gained 2 per cent to $90.48. 
Iron Ore futures suggest a 2.6 per cent gain.
Gold has lost $2.30 to US$1584 an ounce.
Silver has gained $0.03 to US$17.76 an ounce.
Oil was up $0.27 to US$52.59 a barrel.
 

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.