AUD continues to struggle against the USD amid virus fears: ASX poised to open lower

Market Reports

by Rachael Jones

The Australian share market looks set to open lower as US stocks fell for the fifth day. Treasury ten year note yields dropped. The NASDAQ did manage rise as the US markets swung into afternoon trade. On the commodities front, crude oil dropped below $50 a barrel.

Local economic news 

Private capital expenditures fourth quarter.

Markets

Wall Street closed mixed yesterday: The Dow Jones Industrial Average fell 0.5 per cent to close at 26,958, the S&P 500 closed 0.4 per cent lower at 3116 and the NASDAQ added 0.2 per cent to 8981.

European markets closed mixed: London’s FTSE added 0.4 per cent, Paris gained 0.1 per cent and Frankfurt was down 0.1 per cent.

Asian markets closed lower: Hong Kong’s Hang Seng was down 0.8 per cent and China’s Shanghai Composite dipped 0.7 per cent while Tokyo’s Nikkei was 0.8 per cent lower.

Taking all of this into equation, the SPI futures are pointing to a 0.4 per cent fall.

Yesterday, the Australian share market closed 2.2 per cent lower at 6708.

Company news 

Lynas Corporation (ASX:LYC) is pleased to confirm that Lynas Malaysia has received a new three year operating licence until early March 2023. Lynas will now need to begin the process of developing the Permanent Disposal Facility (PDF) within the first year from the date of approval of the licence. They must also report on its development status as determined by the Malaysian Atomic Energy Licensing Board (AELB). And Lynas must ensure that the Cracking and Leaching plant outside Malaysia is in operation before July 2023. Shares in Lynas Corp (ASX:LYC) closed 5.9 per cent lower at $1.90 yesterday.

Ex-Dividends

Auswide Bank Ltd (ASX:ABA) is paying 17 cents fully franked
Coles Group (ASX:COL) is paying 30 cents fully franked
Lendlease Group (ASX:LLC) is paying 30 cents unfranked
Worley Limited (ASX:WOR) is paying 25 cents unfranked

Currencies

One Australian Dollar at 8:35 AM was buying 65.49 US cents, 50.77 Pence Sterling, 72.35 Yen and 60.21 Euro cents.

Commodities

Iron Ore has lost 3 per cent to $88.10.
Iron Ore futures suggest a 2.7 per cent loss.
Gold has lost $8.10 to US$1642 an ounce.
Silver has lost $0.34 to US$17.93 an ounce.
Oil was down $1.19 to US$48.71 a barrel.