Rising Covid cases in Europe rattles markets: ASX closed 0.7% lower

Market Reports

by Rachael Jones

The Australian share market dropped at the open and failed to gain momentum closing 0.7 per cent lower. Xero (ASX:XRO) did well today. Shares in Webjet (ASX:WEB) didn’t do so well today. As for the sectors today Information technology led the day and Materials fell lower.

The S&P/ASX200 index

At the closing bell the S&P/ASX 200 index closed 39 points lower to finish at 5,784.

Futures market

Dow futures are suggesting a fall of 72 points.
S&P 500 futures are eyeing a dip of 12 points.
The Nasdaq futures are eyeing a fall of 59 points.
And the ASX200 futures are eyeing a 45 point fall tomorrow morning.

Local economic news

Guy Debelle, Deputy Governor of the Reserve bank of Australia says “We are now in a gradual and uneven recovery”. He says, a lower exchange rate for the Australian dollar would definitely be beneficial for the Australian economy, so they are continuing to watch developments in the foreign exchange market carefully. He also mentioned lowering the current structure of rates in the economy a little more without going into negative territory.

Payroll jobs in Australia fell by 0.4 per cent from August 22 to September 5, according to experimental data from the taxation office and Australian Bureau of Statistics.

Company news

New Hope Corporation (ASX:NHC) saw increased coal production of 11.3 million tonnes and sales of 11.5 million tonnes in 2020, defying the effects of the global Covid 19 pandemic. Production and sales numbers were driven by the full year interest of 80 per cent in Bengalla Joint Venture. Shares in New Hope Corporation (ASX:NHC) are 2.8 per cent lower at $1.21.

Genex Power (ASX:GNX) has secured an agreement with Powerlink to access land for Queensland's first large-scale battery story project. It’s set to be located at Bouldercombe, near Rockhampton in North Queensland and aims to complete the development by the first half of 2022.

Tabcorp Holdings (ASX:TAH) is moving forward with their announcement yesterday to sell its 11.6 per cent interest in Jumbo Interactive (ASX:JIN).

Best and worst performers of the day

The best performing sector was Infotech adding 2.3 per cent while the worst performing sector was materials, shedding 2 per cent.

The best performing stock in the S&P/ASX 200 was Xero (ASX:XRO), rising 4.4 per cent to close at $95.06. Shares in Fisher and Paykel health corporation (ASX:FPH) and Healius (ASX:HLS) followed higher.

The worst performing stock in the S&P/ASX 200 was Webjet (ASX:WEB), dropping 6 per cent to close at $3.58. Shares in Corporate Travel management (ASX:CTD) and Virgin Money UK (ASX:VUK) followed lower.

Asian markets

Mixed: Japan’s Nikkei is closed, Hong Kong’s Hang Seng has lost 0.8 per cent and the Shanghai Composite has lost 0.7 per cent.

Commodities and the dollar

Gold is trading at US$1,907 an ounce.
Iron ore price is 4.1 down at US$119.82.
Iron ore futures are pointing to a fall of 2 per cent.
Light crude is US$0.07 up at US$39.92 a barrel.
One Australian dollar is buying 71.97US cents.