Australian shares are set for a weaker start this morning after US stocks fell sharply on Monday as both the Dow and the S&P500 had their worst day since September 23rd. Meanwhile, the Nasdaq posted its biggest one day loss since October 2nd. Shares of big tech weighed on the market with Apple, Alphabet, Microsoft and Amazon all down at least 2 per cent. The falls came as opposition to a sizable pandemic aid package hardened in the Republican-controlled US Senate.
Global oil prices fell on Monday with surging global virus cases weighing on the demand outlook. The global tally of coronavirus cases topped 40 million yesterday, as a so-called “second wave” appears to be taking shape.
Economic newsToday CBA will release September data on household spending intentions and The Reserve Bank of Australia will release its board meeting minutes while Reserve Bank Assistant Governor Chris Kent will make a speech.
MarketsTo the figures from around the globe: Wall Street closed lower yesterday: The Dow Jones Industrial Average lost 1.4 per cent to 28,195, the S&P 500 fell 1.6 per cent to 3427 and the NASDAQ closed 1.7 per cent lower at 11,479.
European markets closed lower, London’s FTSE lost 0.6 per cent, Paris fell 0.1 per cent and Frankfurt closed 0.4 per cent lower.
Asian markets closed mixed, Tokyo’s Nikkei added 1.1 per cent, Hong Kong’s Hang Seng gained 0.6 per cent and China’s Shanghai Composite closed 0.7 per cent lower.
Taking all of this into equation, the SPI futures are pointing to 0.7 per cent fall.
Yesterday, the Australian share market closed 0.9 per cent higher at 6229.
CurrenciesOne Australian Dollar at 7:50 AM was buying 70.71 US cents, 54.60 Pence Sterling, 74.53 Yen and 60.07 Euro cents.
Commodities Iron Ore has added 0.4 per cent to US$119.53.
Iron Ore futures suggest 0.6 per cent gain.
Gold has lost $2.10 to US$1904 an ounce.
Silver was up $0.01 to US$24.41 an ounce.
Oil was down $0.22 to US$40.66 a barrel.
