AMP suffers $2.5 billion loss: ASX set to open higher

Market Reports

by Rachael Jones

Following positive leads from US markets, the Australian share market looks set to open slightly higher this morning. European shares also rose. Iron ore rallied. In the US the Treasury department reported that the US budget deficit for the first four months of fiscal 2020 is $389.2 billion. That’s up 25 per cent from the same period a year ago. Over the past 12 months, the national debt has grown over $23 trillion. On the commodities front, oil is up and gold has dropped.


Wall Street closed higher yesterday: The Dow Jones Industrial Average closed 0.9 per cent higher at 29,551, the S&P 500 gained 0.7 per cent to 3379 and the NASDAQ added 0.9 per cent to 9726..

European markets closed higher: London’s FTSE gained 0.5 per cent, Paris added 0.8 per cent and Frankfurt rose 0.9 per cent.

Asian markets closed higher: Tokyo’s Nikkei gained 0.7 per cent, Hong Kong’s Hang Seng was up 0.9 per cent and China’s Shanghai Composite was also up 0.9 per cent and

Taking all of this into equation, the SPI futures are pointing to a 42 points gain.

Yesterday, the Australian share market closed 0.5 per cent higher at 7088.

Company news

AMP (ASX:AMP) released their financial year 19 results showing net loss attributable to shareholders of $2.5 billion. This is largely due to impairments taken in 1H 19 of $2.35 billion (post-tax) to address legacy issues and position AMP for the future. Financial year 19 underlying profit of $464 million has reduced 32 per cent from $680 million in FY 18. This decrease largely reflects the impact of AMP Life and weaker Australian wealth management earnings down by 50 per cent, partly offset by growth in AMP Capital, up 19 per cent. AMP will not declare a final dividend for FY19. Shares in AMP (ASX:AMP) closed 4.6 per cent higher $1.83 yesterday


Dicker Data Limited (ASX:DDR) is paying 13 cents fully franked
IGO Limited (ASX:IGO) is paying 6 cents unfranked
Plato Inc Max Ltd (ASX:PL8) is paying 0.5 cents fully franked
QMS Media Limited (ASX:QMS) is paying 1.3 cents fully franked
Scentre Group (ASX:SCG) is paying 11.3 cents unfranked


One Australian Dollar at 8:45 AM was buying 67.38 US cents, 52.01 Pence Sterling, 74.18 Yen and 61.98 Euro cents.


Iron Ore has gained 0.9 per cent to $87.68.
Iron Ore futures suggest a 3.2 per cent gain.
Gold has lost $0.50 to US$1570 an ounce.
Silver has dropped $0.14 to US$17.46 an ounce.
Oil was up $1.60 to US$51.77 a barrel.