Optimism grows as global economies look to reopen: ASX set to open higher

Market Reports

by Rachael Jones

The Australian share market looks set to open higher this morning as optimism grows that global economies are beginning to look to reopening following on from the coronavirus crisis. In the US Boeing plans to reopen its Dreamliner factory in South Carolina in early May after it shut down operations there for almost a month and workers started returning last week to the company’s Seattle-area plants, home to the majority of Boeing’s airplane production. The Trump administration unveiled a strategy Monday help states ramp up their capacity to test for coronavirus. Back home we are set to see some easing of restrictions. Britain says it’s still too early to relax them there. On the commodities front, the US oil price drops almost 25 per cent to below $13 per barrel.

Local economic news 

The Australian Bureau of Statistics (ABS) will release a number of annual publications covering migration, taxation and government finance.
Roy Morgan and ANZ will also release the weekly reading of consumer sentiment.

Markets

Wall Street closed higher yesterday: The Dow Jones Industrial Average gained 1.5 per cent to close 24,134 the S&P 500 added 1.5 per cent to 2878 and the NASDAQ closed 1.1 per cent higher at 8730.

European markets closed higher: London’s FTSE added 1.6 per cent, Paris gained 2.6 per cent and Frankfurt closed 3.1 per cent higher.

Asian markets closed higher: Tokyo’s Nikkei gained 2.7 per cent, Hong Kong’s Hang Seng advanced 1.9 per cent and China’s Shanghai Composite added 0.3 per cent.

Taking all of this into equation, the SPI futures are pointing to a 0.1 per cent gain.

Yesterday, the Australian share market closed 1.5 per cent higher 5321..

Company news 

Air New Zealand (ASX:AIZ) will begin the painful process of materially reducing its workforce as the severe economic impact of COVID-19 hits the airline. They have had to cut more than 95 per cent of their flights here in New Zealand and around the world. The only flights remaining are in place to keep supply lines open and transport options for essential services personnel. Before COVID-19, they had annual revenue of around $5.8 billion. After paying all bills, they ended the last financial year making a profit of $374 million. The only way they believe they will see an improvement this calendar year is if Kiwis embrace domestic travel after the Level Four Alert is lifted. Shares in Air Nez Zealand (ASX:AIZ) closed 2.52 per cent higher at $1.22 yesterday

Currencies

One Australian Dollar at 7:50 AM was buying 64.66 US cents, 52.09 Pence Sterling, 69.36 Yen and 59.73 Euro cents.

Commodities

Iron Ore has lost 1.2 per cent to US$83.48
Iron Ore futures suggest a 0.8 per cent fall.
Gold has lost $11.80 to US$1724 an ounce.
Silver has lost $0.10 to US$15.34 an ounce.
Oil was down $4.16 to US$12.78 a barrel.