Wall St rebounds after Trump’s China comments: ASX poised to open higher

Market Reports

by Rachael Jones

Following positive leads from US markets, the Australian share market looks set to open higher this morning, as more commentary on the trade tensions between the US and China came out overnight. President Donald Trump called on the Federal Reserve to “match” what he said China would do to offset economic hardship being caused by tariffs. The New York Fed’s gauge of recession probability has risen for predictions over the next year. This movement on the trade talks could see Asian markets lift after closing lower. Europe stocks did rebound to close higher after US-China trade war sell-off. 

Markets

Wall Street closed higher yesterday: The Dow Jones Industrial Average added 0.8 per cent to 25,532, the S&P 500 gained 0.8 per cent to close at 2834 and the NASDAQ rose 1.1 per cent to 7735.

European markets closed higher: London’s FTSE added 1.1 per cent, Paris gained 1.5 per cent and Frankfurt rose almost 1 per cent.

Asian markets closed lower, Tokyo’s Nikkei fell 0.6 per cent, Hong Kong’s Hang Seng was down 1.5 per cent and China’s Shanghai Composite lost 0.7 per cent.

Taking all of this into equation, the SPI futures are up 25 points. Yesterday, the Australian share market closed 58 points (0.9 per cent) lower at 6240

Local economic news

WBC-MI consumer confidence May,
Wage price index first quarter

Company news

Cann Group (ASX:CAN) reports that the Victorian Government has taken delivery of the first Australian sourced and commercially grown cannabis resin for use by Australian patients. The company entered into a supply contract last October with the Victorian Department of Health and Human Services (DHHS), through its Office of Medicinal Cannabis (OMC), for the supply. The cannabis resin has been extracted from dry cannabis flower produced at the Cann Group’s undisclosed Southern Facility in Melbourne. The company has an agreement with Agriculture Victoria to undertake the resin extraction process using a supercritical CO2 extraction method to produce a whole plant extract. The resin subsequently undergoes further development into a product formulation suitable for patient use. Shares in Cann Group (ASX:CAN) closed 1.8 per cent lower at $2.16 yesterday.

Currencies

One Australian Dollar at 7:40AM was buying 69.44US cents, 53.81Pence Sterling, 76.13 Yen and 61.98 Euro cents.

Commodities

Iron Ore futures suggest a 0.9 per cent fall
Gold has dropped $4.30 to US$1298 an ounce.
Silver was up $0.02 to US$14.80 an ounce.
Oil gained $0.32 to US$61.53 a barrel.
 

Rachael Jones

Finance News Network
Rachael comes to FNN after working for Fairfax Media covering international breaking news, including the global economy and politics. She joined FNN in February 2018. She has reported on Australia’s finance news for various organisations since 2000 and has also interviewed a number of key business players, including Bill Gates. Rachael has also worked across a number of countries, including the UK and the US.