Stocks slide as Coronavirus moves to the US: ASX poised to open lower

Market Reports

by Rachael Jones

The Australian share market is set to open lower this morning after being rocked by news of China’s virus seeing the death toll rise to 17. The previously unknown, flu-like coronavirus strain now has cases detected in the United States. Officials are imposing restrictions on travel out of Wuhan, the central Chinese city of more than 11 million at the epicentre of the outbreak. Meanwhile, over in Europe US President Donald Trump says the European Union has “no choice” but to negotiate a new trade deal with America. He met with European Commission President Ursula von der Leyen at the World Economic Forum in Switzerland on Tuesday. He has threatened tariffs on European cars.

Markets

Wall Street closed mixed yesterday: The Dow Jones Industrial Average closed 0.03 per cent lower at 29,186, the S&P 500 gained 0.03 per cent to 3,322 and the NASDAQ climbed 0.1 per cent to 9384..

European markets closed lower: London’s FTSE lost 0.5 per cent, Paris lost 0.6 per cent and Frankfurt lost 0.3 per cent.

Asian markets closed higher: Tokyo’s Nikkei added 0.7 per cent, Hong Kong’s Hang Seng rose 1.3 per cent and China’s Shanghai Composite closed 0.3 per cent higher

Taking all of this into equation, the SPI futures are pointing to a 15-point fall.

Yesterday, the Australian share market closed 66 points higher at 7.133.

Local economic news

The Australian Bureau will release figures later for Australian’s Labour force for December

Company news 

The Board of Cann Global (ASX:CGB) has signed an exclusive distributorship supply contract deal with EPCO Foods Co. in Vietnam and will supply its T12 products to COSTCO Australia. They will supply their Australian store network with Certified Organic Hemp Protein powder. The VitaHemp premium Hemp Seed Oil Capsules continue to be well received. Along with Hemp Seed Oil capsules, Hemp Protein Powder will be a first for Costco Australia. Shares in Cann Global (ASX:CGB) closed flat at $0.02.

Currencies

One Australian Dollar at 9.00AM was buying 68.47 US cents, 52.14 Pence Sterling, 75.20 Yen and 61.71 Euro cents.

Commodities

Iron ore lost $0.12 at $96.68
Iron Ore futures suggest a 0.5 per cent rise.
Gold has gained $0.80 to US$1,559 an ounce.
Silver has gained $0.03 to US$17.84 an ounce.
Oil has fallen by $2.18 to US$56.20 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.