WHO shift sentiment on coronavirus: 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. The shift comes as the World Health Organisation says that it sees no reason for measures regarding the coronavirus that unnecessarily interfere with international travel and trade. They also praised China for their effort to contain the virus. Meanwhile, the White House trade advisor said this week that the US would not remove tariffs on China should the outbreak weigh on China’s economy. On the commodities front, oil has shed and gold has added.

Local economic news 

ABS Producer Price Indexes, December 2019.

Markets

Wall Street closed higher yesterday: The Dow Jones Industrial Average closed 0.44 per cent higher at 28,859, the S&P 500 gained 0.3 per cent to 3284 and the NASDAQ added 0.3 per cent to 9299.

European markets closed lower: London’s FTSE lost 1.4 per cent, Paris fell 1.4 per cent and Frankfurt was also down 1.4 per cent.

Asian markets closed lower: Tokyo’s Nikkei fell 1.7 per cent, Hong Kong’s Hang Seng shed 2.6 per cent and China’s Shanghai Composite was closed.

Taking all of this into equation, the SPI futures are pointing to a 37 points gain

Yesterday, the Australian share market closed 0.3 per cent lower at 7008.

Company news 

Perpetual (ASX:PPT) today announced its intention to acquire Trillium Asset Management a Boston-based specialist ESG investment firm with FUM of $5.5 billion. They will acquire 100% of Trillium for $54 million, bringing together two highly respected investment management businesses. This acquisition will establish US beachhead and increases exposure to fast growth ESG sector. Shares in Perpetual (ASX:PPT) closed 2.13 per cent lower $41.38 yesterday.

Ex-dividends

MCP Income Opportunities Trust (ASX:MOT) is paying 1.03 cents unfranked
MCP Master Income Trust (ASX:MXT) is paying 1.05 cents unfranked
Partners Group Global Income Fund (ASX:PGG) is paying 0.7916 cents unfranked

Currencies

One Australian Dollar at 8:35 AM was buying 67.23 US cents, 51.36 Pence Sterling, 73.27 Yen and 60.96 Euro cents.

Commodities

Iron Ore has lost 2.2 per cent to $84.94.
Gold has added $2.10 to US$1578 an ounce.
Silver has gained $0.33 to US$17.82 an ounce.
Oil has shed $0.44 to US$52.89 a barrel.