Global rally as coronavirus fears are soothed: 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. Coronavirus fears continue to settle with Asian stocks also on the rise. Despite this the rapid spread of the virus has sparked concern over the potential fallout for the China, with businesses beginning to feel the impact from falling demand as areas are shutdown. On the commodities front, oil managed to pull back a day after falling to their lowest in over a year.

Local economic news 

RBA governor Philip Lowe will give a speech in Sydney at midday.
AiG to realease performance of construction January

Markets

Wall Street closed higher yesterday: The Dow Jones Industrial Average closed 1.4 per cent higher at 28,808, the S&P 500 gained 1.5 per cent to 3298 and the NASDAQ added 2.1 per cent to 9468.

European markets closed higher: London’s FTSE gained 1.6 per cent, Paris added 1.8 per cent and Frankfurt was also up 1.8 per cent.

Asian markets closed also higher: Tokyo’s Nikkei added 0.5 per cent, Hong Kong’s Hang Seng gained 1.2 per cent and China’s Shanghai Composite rose 1.3 per cent.

Taking all of this into equation, the SPI futures are pointing to a 43 points gain.

Yesterday, the Australian share market closed 0.4 per cent higher at 6949.

Company news

Infratil (ASX:IFT) today announced an initial investment in Galileo Green Energy, a recently formed renewable energy platform headquartered in Zurich, Switzerland. Infratil will invest in them in conjunction with the Commonwealth Superannuation Corporation, the New Zealand Superannuation Fund and the Morrison & Co Growth Infrastructure Fund. Infratil will own a 40 per cent interest in GGE, with each of its Co-Investors owning a 20 per cent interest. Shares in Infratil (ASX:IFT) last traded at $5.16 on the 3rd of Feb.

Currencies

One Australian Dollar at 8:35 AM was buying 67.39 US cents, 51.74 Pence Sterling, 73.82 Yen and 61.04 Euro cents.

Commodities

Iron Ore has added 4.2 per cent to $83.76.
Iron Ore futures suggest a 2.5 per cent fall.
Gold has fallen $23.70 to US$1559 an ounce.
Silver has lost $0.07 to US$17.61 an ounce.
Oil was down $0.44 to US$49.67 a barrel.