Global Covid cases poised to top 100 milllion: ASX to open lower

Market Reports

by Rachael Jones


The Australian share market is set to take a tumble this morning amid a fall on Wall Street. The International Monetary Fund has become more upbeat about the global economy, the World Economic Outlook now expects the global economy to grow 5.5 per cent this year. It is, however, worried about the risk the new Covid variants pose to the post-pandemic recovery.Over in the UK the death toll from coronavirus has surpassed 100,000 – the first country in Europe to do so. Globally cases are poised to top 100 million within days. In the US, the Biden administration is expected to announce a temporary suspension of new oil and gas leasing on US federal lands and waters today.

Economic news 

The ABS issues the Consumer Price Index for the December quarter and CommSec releases the quarterly State of the States report.



Markets

Wall Street closed lower yesterday: The Dow Jones Industrial Average lost 0.1 per cent to 30,937, the S&P 500 fell 0.2 per cent to 3850 and the NASDAQ closed 0.1 per cent lower at 13,626.

European markets closed higher, London’s FTSE added 0.2 per cent, Paris gained 0.9 per cent and Frankfurt closed 1.7 per cent higher.

Asian markets closed lower, Tokyo’s Nikkei fell almost 1 per cent, Hong Kong’s Hang Seng lost 2.6 per cent and China’s Shanghai Composite closed 1.5 per cent lower.

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

On Monday, the Australian share market closed 0.4 per cent higher at 6825.

Company news

Synlait Milk (ASX:SM1) has updated its forecast base milk price for the 2020 / 2021 season to $7.20 kilograms milk solids from $6.40 kgMS. The decision was driven by the strong increase in dairy commodity prices over recent months and the company’s view that commodity prices will remain around current levels for the remainder of the milk season. Synlait’s next milk price announcement will occur in May 2021. Shares in Synlait Milk (ASX:SM1) closed 0.46 per cent lower at $4.34 on Monday.

Currencies

One Australian Dollar at 8:20 AM was buying 77.53 US cents, 56.42 Pence Sterling, 80.33 Yen and 63.72 Euro cents.

Commodities

Iron Ore has lost 2.4 per cent to US$165.07.
Iron Ore futures are flat.
Gold has lost $5.00 to US$1854 an ounce.
Silver was up $0.04 to US$25.53 an ounce.
Oil was down $0.25 to US$52.52 a barrel.