$35 million deal from NSW gov for Fleetwood (ASX:FWD): 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. Shares on Wall Street ended the week on a positive note. President Donald Trump is still deliberating signing into a law an amendment that would require annual reviews of Hong Kong’s special trading status separate from China. Chinese state media has accused the US of meddling in China’s domestic affairs. Swiss pharmaceutical company Novartis has agreed to buy Medicines Co. for an equity value of about $10 billion. Medicines Co. shareholders will get $85 a share. They specialise in a cholesterol drug.

Local Economic News for this week

Tuesday

Reserve Bank Governor Philip Lowe will give a speech at the Australian Business Economists annual dinner

Wednesday 

Construction work done in Australia for September.

Thursday

The ABS issues the publication “Private Capital Expenditure”. Simply, this is the business investment data for the September quarter – spending on equipment and buildings.

Friday

The Reserve Bank issues the “Private Sector Credit” publication.

Markets

Wall Street closed higher on Friday: The Dow Jones Industrial Average added 0.4 per cent to close at 27,876, the S&P 500 gained 0.2 per cent to close at 3110 and the NASDAQ rose 0.2 per cent to 8520.

European markets closed higher on Friday: London’s FTSE gained 1.2 per cent, Paris added 0.2 per cent and Frankfurt closed 0.2 per cent higher.

Asian markets closed mixed on Friday: Tokyo’s Nikkei added 0.3 per cent, Hong Kong’s Hang Seng closed 0.5 per cent higher and China’s Shanghai Composite lost 0.6 per cent.

Taking all of this into equation, the SPI futures are pointing to 0.2 per cent gain. On Friday, the Australian share market closed 37 points (0.6 per cent) higher at 6710.

Company news 

Fleetwood Corporation (ASX:FWD) announced that Hansen Yuncken and Fleetwood subsidiary Modular Building Systems (MBS) have been awarded a soon to be announced NSW Government contract. MBS’s subcontract with Hansen Yuncken over the course of FY20 and FY21 is valued at approximately $35 million. MBS based in NSW and specialises in the manufacture and installation of prefabricated affordable modular buildings. Managing Director & CEO, Brad Denison says: “MBS has enabled Fleetwood to expand its footprint in the NSW market”. Shares in Fleetwood Corporation (ASX:FWD) closed 1.49 per cent lower to $1.98 on Friday.

Ex-Dividends

Whitefield Ltd (ASX:WHF) is paying 10.25 cents fully franked

Currencies

One Australian Dollar at 7:40 AM was buying 67.96 US cents, 52.90 Pence Sterling, 73.87 Yen and 61.70 Euro cents.

Commodities

Iron Ore has added 1.6 per cent to US$88.08.
Iron Ore futures suggest a 1.3 per cent gain.
Gold is flat at US$1471 an ounce.
Silver was down 6 cents to US$17.15 an ounce.
Oil has lost $0.81 to US$57.77 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.