China factories reopen after extended break: ASX poised for a flat start

Market Reports

by Rachael Jones

It’s a bit of a lacklustre start to the week on the markets, looking set for a flat start. The death toll continues to rise from the coronavirus. Factories in China are expected to reopen today after being closed for an extended Lunar New Year holiday. Chinese manufacturing is critical to the electronics industry. Back home companies we can expect to hear schedule results from today are Aurizon (ASX:AZJ), GPT Group (ASX:GPT), JB HiFi (ASX:JBH).

Markets

Wall Street closed lower on Friday: The Dow Jones Industrial Average dropped 0.9 per cent to close at 29,103, the S&P 500 fell 0.5 per cent to close at 3328 and the NASDAQ shed 0.5 per cent to 9521.

European markets closed lower on Friday: London’s FTSE fell 0.5 per cent, Paris shed 0.1 per cent and Frankfurt closed 0.5 per cent lower.

Asian markets closed also mixed on Friday: Tokyo’s Nikkei fell 0.2 per cent, Hong Kong’s Hang Seng dipped 0.3 per cent and China’s Shanghai Composite gained 0.3 per cent.

Taking all of this into equation, the SPI futures are pointing to 0.1 per cent gain. On Friday, the Australian share market closed 27 points (0.4 per cent) lower at 7023.

Local economic news

On Tuesday, there are three indicators to be released. ANZ and Roy Morgan issue the consumer sentiment index for the week. The National Australia Bank issues the January business survey. And the Australian Bureau of Statistics (ABS) releases the December “Lending Indicators” publication.

On Wednesday the Reserve Bank is to issue data on credit and debit cards.

On Thursday, Reserve Bank Governor Philip Lowe engages in panel participation at the 7th AustraliaCanada Economic Leadership Forum.

Company news 

The Board of Advanced Nanotek (ASX:ANO) have received notification that the TGA have completed the approval process of their Brisbane laboratory licence. Once the formalities are completed the licence should be issued next week. The Board confirms that there is an anticipated saving of approximately $100,000 per month in external testing costs, with an annualised saving of in excess of $1 million. Shares in Advanced Nanotek (ASX:ANO) ) closed 7.6 per cent higher at $6.35 on Friday.

Currencies

One Australian Dollar at 7:45 AM was buying 66.73 US cents, 51.80 Pence Sterling, 73.16 Yen and 60.96 Euro cents.

Commodities

Iron Ore has added 0.5 per cent to US$83.59.
Iron Ore futures suggest a 0.4 per cent gain.
Gold was up $3.40 to US$1573 an ounce.
Silver has lost 13 cents to US$17.69 an ounce.
Oil has lost $0.63 to US$50.32 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.