Market set to defy negative economic data: Aus shares to open higher

Market Reports

by Katrina Bullock

The SPI Futures are pointing to a rise at the open for the Australian share market, despite a raft of negative international economic data overnight. US stocks showed resilience, rising higher despite the news that another 4.4 million people filed for unemployment benefits last week, bringing the total to around 26.5 million. Over in the UK, the IHS Markit Composite PMI fell to a new record low of 12.9. The Purchasing Managers Index sat at 36.0 in March with this greater-than-expected drop coming as a surprise to the market. This comes as the UK government announces plans to sell 180 billion pounds of bonds in the next three months to soften the effect of the pandemic. That’s more bonds than the UK government had planned to ink for the entire 2020/2021 fiscal year.


Wall Street closed mixed yesterday: The Dow Jones Industrial Average gained 0.2 per cent to close 23,515 the S&P 500 lost 0.1 per cent to 2798 and the NASDAQ closed 0.01 per cent lower at 8495.

European markets closed higher: London’s FTSE added almost 1 per cent, Paris gained 0.9 per cent and Frankfurt closed almost 1 per cent higher.

Asian markets closed mixed: Tokyo’s Nikkei gained 1.5 per cent, Hong Kong’s Hang Seng gained 0.4 per cent and China’s Shanghai Composite lost 0.2 per cent.

Taking all of this into equation, the SPI futures are pointing to a 0.2 per cent gain.

Yesterday, the Australian share market closed 4 points lower at 5217.

Company news 

Communications and IT services provider, Speedcast International (ASX:SDA) intends to initiate voluntary financial restructuring in accordance with chapter 11 of the United States Bankruptcy Code. The Company also announced that it has received a commitment for up to $90 million in new money debtor-in-possession financing from the holders of its outstanding term loan and revolver debt The company says that “none of the entities associated with the company’s government business have filed for chapter 11 relief” and that “all entities – regardless of their status in the chapter 11 process – are operating and serving customers as usual”. Speedcast International (ASX:SDA) has been suspended from trading. Its shares last traded at 79 cents on the 31st of January.

One Australian Dollar at 7:15 AM was buying 63.72 US cents, 51.62 Pence Sterling, 68.59 Yen and 59.14 Euro cents.

Iron Ore has lost 0.7 per cent to $84.46
Iron Ore futures suggest a 0.2 per cent gain.
Gold has added $13.30 to US$1752 an ounce.
Silver has gained $0.03 to US$15.54 an ounce.
Oil is up $3.09 to US$16.87 a barrel.

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