The White House plan to inject $1 trillion into US economy: ASX poised for an uncertain open

Market Reports

by Rachael Jones

The Australian share market could surprise us this morning. There is uncertainty as to which way it will open. On Wall Street investors were relieved that President Donald Trump is seeking a $1 trillion dollar package for the coronavirus fight. The Dow Jones Industrial Average ended more than 1000 points higher after yet another day of highs and lows. Back home the Federal Government has urged all citizens overseas to fly back to Australia as soon as possible if they plan to return home, as fears of border closures grow during the outbreak. The Government is also set to introduce stimulus measures should help Australia's major airlines.The European Union has agreed to close the external borders to most people from other countries for 30 days in a new effort to slow the coronavirus pandemic. On Monday, Canada’s prime minister, Justin Trudeau, said he was closing his nation’s borders to foreigners, with the exception of US citizens. The Aussie dollar has dropped to below 60 US cents.

Markets

Wall Street gained yesterday: The Dow Jones Industrial Average added 5.2 per cent to close at 21,237, the S&P 500 gained 6 per cent to 2529 and the NASDAQ increased 6.2 per cent to 7335.

European markets closed higher: London’s FTSE gained 2.8 per cent, Paris added 2.8 per cent and Frankfurt closed up 2.3 per cent.

Asian markets closed mixed: Tokyo’s Nikkei added 0.1 per cent, Hong Kong’s Hang Seng gained 0.9 per cent and China’s Shanghai Composite was down 0.3 per cent.

Taking all of this into equation, the SPI futures are pointing to a 0.1 per cent fall.

Yesterday, the Australian share market closed 5.8 per cent higher at 5293.

Company news

Kathmandu Holdings Limited (ASX:KMD) report that travel and movement restrictions globally have impacted the Group’s European operations where the majority of Rip Curl stores and wholesale customers are now in enforced closures. There has been a recent significant reduction in footfall in Australian and New Zealand stores, impacting sales performance. Due to the uncertainty around the spread of COVID-19 globally the Group cannot forecast the extent to which it will impact the business in the second half of this fiscal year. However, there is likely to be a material adverse impact to earnings.
Shares in Kathamandu Holdings (ASX:KMD) closed 7.6 per cent lower at $1.70 yesterday.

Ex-Dividends

Carsales.Com Ltd. (ASX:CAR) is paying 22 cents fully franked
Contact Energy Ltd (ASX:CEN) is paying 14.50 cents unfranked
Generation Dev Group (ASX:GDG) is paying 1 cent unfranked
Pacific Smiles Group ((ASX:PSQ) is paying 2.4 cents fully franked
Supply Network (ASX:SNL) is paying 6.5 cents fully franked

Currencies

One Australian Dollar at 7:45 AM was buying 59.95 US cents, 49.75 Pence Sterling, 64.55 Yen and 54.52 Euro cents.

Commodities

Iron Ore has gained 0.4 per cent to $91.20.
Iron Ore futures suggest a 0.9 per cent gain.
Gold has gained $41.60 to US$1528 an ounce.
Silver has lost $0.18 to US$12.64 an ounce.
Oil was down $1.91 to US$26.79 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.