Philip Lowe says bushfires to take 0.2pp off GDP growth: ASX closed 0.4% higher

Market Reports

by Rachael Jones

It has been a positive day of trade for the Australian share market, the local bourse managed to close 0.4 per cent higher. Orocobre (ASX:ORE) and Pilbara Minerals (ASX:PLS) saw rises and Resolute Mining (ASX:RSG) and Regis Resources (ASX:RRL) saw declines. The best-performing sector is Information Technology, while the worst performing sector is Utilities.

The S&P/ASX200 index

At the closing bell the S&P/ASX 200 index closed 27 points higher to finish at 6,976.

Futures market

Dow futures are suggesting a fall 32 points.
S&P 500 futures are eyeing a dip of 6 points.
The Nasdaq futures are eyeing a fall of 18 points.
And the ASX200 futures are eyeing a 18 point rise tomorrow morning.

Local economic news

Reserve Bank Governor Philip Lowe addressed the National Press Club in Sydney today saying  the global economy over the next couple of years remains reasonable and growth is expected to be a little stronger than it was in 2019. The IMF estimates that the global economy expanded by 2.9 per cent last year and in its latest published forecasts is predicting economic growth to lift to 3.3 per cent this year and 3.4 per cent in 2021.

Lowe also noted that Australia’s bushfires will reduce our GDP growth by around 0.2 percentage points across the two quarters.

Company news

Managed services provider CSG (ASX:CSV) reports that the Supreme Court of NSW has today made orders approving the scheme of arrangement between CSG and its shareholders under which Fuji Xerox Asia Pacific will acquire 100 per cent of the shares in CSG for $0.31 per share. The company has lodged the orders with the Australian Securities and Investments Commission ("ASIC") the orders of the Supreme Court of NSW. Shares in CSG (ASX:CSV) closed flat at $0.30.

The Woolworths Group (ASX:WOW) has completed the Restructure Scheme and ALH Merger to combine its retail drinks business and ALH Group to create the Endeavour Group. Effective from yesterday, the Woolworths Group holds 85.4 per cent of the combined Endeavour Group.

Computershare (ASX:CPU) has acquired Corporate Creations, a US registered agent providering servicing to over 14,000 corporate entities across America for $142.9 million.

Diversified mining services company Perenti (ASX:PRN) says it is currently giving consideration to the potential purchase of Downer’s mining services division.

NRW Holdings (ASX:NWH) has received a Notice of Award for the Bulk Earthworks contract for the Iron Bridge Magnetite Project. The project is a joint venture between Fortescue Metals Group subsidiary FMG Iron Bridge and Formosa Steel IB Pty Ltd.

Best and worst performers 

The best performing sector was Infotech adding 2.1 per cent while the worst performing sector was Utilities, shedding 0.8 per cent.

The best performing stock in the S&P/ASX 200 is Orocobre (ASX:ORE) rising 19 per cent to $3.64, followed by shares in Pilbara Minerals (ASX:PLS) and CIMIC Group (ASX:CIM).

The worst performing stock in the S&P/ASX 200 is Resolute Mining (ASX:RSG) shedding 4.6 per cent to $1.05 followed by shares in Regis Resources (ASX:RRL) and Mayne Pharma (ASX:MYX)

Asian markets

Japan’s Nikkei has added 1.4 per cent, Hong Kong’s Hang Seng has added 0.6 per cent and the Shanghai Composite has gained 1.6 per cent.

Commodities and the dollar

Gold is trading at US$1,559 an ounce.
Iron ore price has added 4.2 per cent at US$83.76.
Iron ore futures are pointing to a fall of 0.2 per cent.
Light crude is US$0.16 down at US$49.45 a barrel.
One Australian dollar is buying 67.37 US cents.
 

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.