Oil jumps as US scrap waivers on Iranian crude: ASX set to open higher

Market Reports

by Rachael Jones

The ASX is set to open higher this morning as light volume saw US markets rise. Oil jumped to six month highs after the Trump administration announced it will no longer grant sanctions waivers to any country that is currently importing Iranian oil. This move could potentially wipe 1 million barrels per day off the market. The cost of crude and gasoline is on the rise. Energy shares rallied on this. Real estate companies slumped as house sales were reported to be down for March.

Economic news

We can see the Consumer Price Index for March this year on Wednesday and on Friday Producer Price Indexes for March 2019 and International Trade Price Indexes also for March 2019.


Wall Street closed mixed yesterday: The Dow Jones Industrial Average closed 0.2 per cent lower at 26,511, the S&P 500 added 0.1 per cent to close at 2908 and the NASDAQ gained 0.2 per cent to 8015.

European markets were closed.

Asian markets closed mixed, Tokyo’s Nikkei added 0.1 per cent, Hong Kong’s Hang Seng was closed and China’s Shanghai Composite fell 1.7 per cent.

Taking all of this into equation, the SPI futures are up 26 points. The Australian share market closed 3 points (0.1 per cent) higher at 6260 on Thursday.

Company news

Bubs Australia (ASX:BUB) announced last week that all conditions precedent have been met for the acquisition of Australia Deloraine Dairy and the off-market share transfers by the NuLac Foods Vendors to C2 Capital Partners, as announced on 1 April 2019, are expected to complete later today. In addition, Steve Lin, Managing Partner of C2 has been appointed Non-Executive Director on the Bubs Australia Board. Alibaba Group is an anchor investor in C2 Capital Partners. Announcing the completion of the transactions, Bubs Australia’s Chairman, Dennis Lin says the acquisition of Deloraine is a vital element of their vertical integration strategy with a particular goal to enable Bubs to export its infant formula products to China to be sold in physical Mother and Baby stores. Shares in Bubs Australia (ASX:BUB) closed 10.13 per cent higher at $0.87.


Oneall International Ltd (ASX:1AL) is paying 1.5 cents unfranked
NRW Holdings Limited (ASX:NWH) is paying 2 cents fully franked
Ridley Corporation Ltd (ASX:RIC) is paying 1.5 cents fully franked


One Australian Dollar at 7:30AM was buying 71.38US cents, 54.99 Pence Sterling, 79.89 Yen and 63.41 Euro cents.


Iron Ore futures suggest a 0.5 per cent drop.
Gold has added $0.80 to US$1277 an ounce.
Silver has gained $0.01 to US$15.04 an ounce.
Oil jumped $1.61 to US$65.68 a barrel.