US job recovery stalls, rattling the markets: ASX poised to open lower

The Australian share market looks set to drop this morning with mixed results from the US overnight as their job market recovery appears to stall. Coronavirus infections across the US have now surpassed 4 million. The World Health Organisation warns there is no going back to normal. Back home, as we reported yesterday, our budget deficit hit almost $86 billion last financial year, the biggest blow to the bottom line since World War II.

Local economic news

International Merchandise Trade, Preliminary, June 2020.

Markets

Wall Street closed lower yesterday: The Dow Jones Industrial Average fell 1.3 per cent to 26,652, the S&P 500 lost 1.2 per cent to 3236 and the NASDAQ closed 2.3 per cent lower at 10,461.

European markets closed mixed, London’s FTSE added 0.1 per cent, Paris lost 0.1 per cent and Frankfurt closed 0.01 per cent lower.

Asian markets closed mixed, Tokyo’s Nikkei was closed, Hong Kong’s Hang Seng gained 0.8 and China’s Shanghai Composite closed 0.2 per cent lower.

Taking all of this into equation, the SPI futures are pointing to a 0.9 per cent fall.

Yesterday, the Australian share market closed 0.3 per cent higher at 6095.

Company news

Nufarm (ASX:NUF) has decided to change its financial year end from 31 July to 30 September to better align the half year reporting period with Nufarm’s key sales periods and enable improved comparison with industry peers. Nufarm’s earnings are currently weighted toward the second half of the financial year and this is expected to become more pronounced following the divestment of the South American businesses which was completed in April 2020. The following financial reporting period will be for a transitional period commencing 1 August 2020 and ending 30 September 2020. Results for the transitional period will be announced in November 2020. Shares in Nufarm (ASX:NUF) closed 0.25 per cent lower at $4.05 yesterday.

Currencies

One Australian Dollar at 6:50 AM was buying 70.96 US cents, 55.74 Pence Sterling, 75.84 Yen and 61.22 Euro cents.

Commodities

Iron Ore lost 0.8 per cent to US$110.12.
Iron Ore futures suggest a 0.8 per cent loss.
Gold has added $18 to US$1883 an ounce.
Silver was down $0.43 cents to US$22.72 an ounce.
Oil was down $0.94 to US$40.96 a barrel.

You can find details on our website about this month’s Investor Event on 28th July.