Dow surges on coronavirus confidence: ASX set to open higher

Market Reports

by Rachael Jones

The Australian share market looks set to open higher this morning after a volatile day on Wall Street ending with a rise in the Dow. Utilities, tech, consumer staples and real estate all rose more than 5 per cent to lead the S&P 500 higher. Confidence grew as investors viewed large economy countries set to act to off set any impact from the spreading of the coronavirus.

Local economic news

We are set to see Building Approvals for January, Government Finance Statistics, for December 2019.
Balance of Payments and International Investment Position, December 2019 from the Australian Bureau of statistics.
The Reserve Bank of Australia have a policy meeting today at 2.30pm.

Markets

Wall Street closed higher yesterday: The Dow Jones Industrial Average gained 5.1 per cent to close at 26,703, the S&P 500 added 4.6 per cent to 3090 and the NASDAQ rose 4.5 per cent to 8952.

European markets closed mixed: London’s FTSE added 1.1 per cent, Paris gained 0.4 per cent and Frankfurt was down 0.3 per cent.

Asian markets closed higher: Hong Kong’s Hang Seng was up almost 1 per cent and China’s Shanghai Composite added 0.6 per cent while Tokyo’s Nikkei gained 3.2 per cent.

Taking all of this into equation, the SPI futures are pointing to a 1.1 per cent gain.

Yesterday, the Australian share market closed 0.8 per cent lower at 6392.

Company news

Danakali (ASX:DNK) is pleased to announce that the Colluli Mining Share Company (CMSC) has successfully executed Engineering, Procurement, Construction Management Phase 1 of Project development and has now moved to Phase 2. The Owner’s Project Team based in Johannesburg and led by Project Director Tony Harrington, has made significant progress with the delivery of Phase 1, on schedule, on budget and in line with the Front-End Engineering Design (FEED). This takes Colluli closer to the construction phase and then into production in 2022. Shares in Danakali (ASX:DNK) closed 1.9 per cent lower at $0.51 yesterday.

Ex-Dividends

Australian Leaders Fund (ASX:ALF) is paying 2.5 cents unfranked
Amcor PLC (ASX:AMC) is paying 17.1 cents unfranked
Bravura Solution Ltd (ASX:BVS) is paying 5.5 cents unfranked
Cleanaway Waste Ltd (ASX:CWY) is paying 2 cents fully franked
ECP Emerging Growth (ASX:ECP) is paying 1.75 cents fully franked
Helloworld Travel Ltd (ASX:HLO) is paying 9 cents fully franked
Kina Securities Ltd (ASX:KSL) is paying 5.44 cents unfranked
Medibank Private Ltd (ASX:MPL) is paying 5.7 cents fully franked
Oil Search Ltd (ASX:OSH) is paying 6.8089 cents unfranked
Probiotec Limited (ASX:PBP) is paying 1.5 cents fully franked
St Barbara Limited (ASX:SBM) is paying 4 cents fully franked
Spark Infrastructure (ASX:SKI) is paying 7.5 cents unfranked

Currencies

One Australian Dollar at 8:35 AM was buying 65.43 US cents, 51.29 Pence Sterling, 70.88 Yen and 58.76 Euro cents.

Commodities

Iron Ore has gained 5.9 per cent to $88.93.
Iron Ore futures suggest a 5.8 per cent gain.
Gold has added $22.20 to US$1589 an ounce.
Silver has gained $0.25 to US$16.71 an ounce.
Oil was up $2.61 to US$47.37 a barrel.