Boris Johnson to become UK PM, FTSE up: ASX set 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. In New York, all three major benchmarks closed higher. The S&P 500 and the Nasdaq approached their record highs. Shares in the US were mostly lifted by Coca-Cola and United Technologies positive quarterly reports. Over in the UK, Boris Johnson was announced as the country's next Prime Minister. Immediately afterwards the pound pared its losses with some experts predicting the pound could crash down to US$1.

Markets

The Dow Jones Industrial Average gained 0.65 per cent to 27,349, the S&P 500 added 0.68 per cent to close at 3006 and the NASDAQ rose 0.58 per cent to 8251.

European markets closed higher: London’s FTSE added 0.6 per cent, Paris rose 0.9 per cent and Frankfurt was up 1.64 per cent.

Asian markets closed higher: Tokyo’s Nikkei added 0.95 per cent, Hong Kong’s Hang Seng was up 0.34 per cent and China’s Shanghai Composite added 0.45 per cent.

Taking all of this into equation, the SPI futures are pointing to a 0.5 per cent rise.

Yesterday, the Australian share market closed 33 points or 0.5 per cent higher at 6725.

Company news

New Energy Solar (ASX:NEW) announced that the Beryl Solar Power Plant has entered into a binding Power Purchase Agreement with Kellogg Australia, a subsidiary of the cereal giant the Kellogg Company. Last year Kellog had net sales of over US$13 billion. They are a member of the RE100 initiative to transition to sourcing 100 per cent of its global electricity needs from renewable sources. With the Kellogg’s PPA in place, New Energy Solar expects Beryl’s five-year unlevered annual average gross yield to be 8.2 per cent. Shares in New Energy Solar (ASX:NEW) closed 0.8per cent lower at $1.27 yesterday.

Currencies

One Australian Dollar at 7:40AM was buying 70.04US cents, 56.32Pence Sterling, 75.80 Yen and 62.81 Euro cents.

Commodities

Iron Ore futures suggest a 2.0 per cent fall.
Gold has fallen $8.80 to US$1418 an ounce.
Silver was up $0.02 to US$16.43 an ounce.
Oil added $0.95 to US$57.17 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.