The Dow jumps up on hopes of coronavirus stimulus package: ASX poised to open higher

Market Reports

by Rachael Jones

The Australian share market looks set to open higher. The Dow rebounded more than 11 per cent in its best day since 1933. The rise comes as US Congress battles out a coronavirus stimulus deal. Chevron gained more than 22 per helping the Dow after they reported no cuts to their dividend. American Express and Boeing also rallied more than 20 per cent. Meanwhile US President Donald Trump says he wants to reopen the US economy by Easter. Back home economists report that we could see house prices plummet by 20 per cent. On the commodities front, oil was up and gold has gained over US$90.

Local economic news 

ABS Engineering Construction Activity, December 2019.

Markets

Wall Street closed higher yesterday: The Dow Jones Industrial Average added 11.4 per cent to close 20,705, the S&P 500 gained 9.4 per cent to 2447and the NASDAQ was up 8.1 per cent to 7418.

European markets closed higher: London’s FTSE gained 9.1 per cent, Paris added 8.4 per cent and Frankfurt closed up 11 per cent.

Asian markets closed higher: Tokyo’s Nikkei gained over 7 per cent, Hong Kong’s Hang Seng added 4.5 per cent and China’s Shanghai Composite was up 2.3 per cent.

Taking all of this into equation, the SPI futures are pointing to a 5.9 per cent gain.

Yesterday, the Australian share market closed 4.2 per cent higher at 4736.

Company news 

Fletcher Building (ASX:FBU) says there has been no material disruption to our manufacturing, distribution, residential and construction operations during the coronavirus pandemic. Since the FY20 Half Year Results announcement in mid-February, the businesses have continued to trade largely in line with expectations. However, it is now clear that COVID-19 and the significant escalation of government protection measures in New Zealand and Australia will have a material impact on our operations and our FY20 financial results. For this reason, the Board has decided to withdraw Fletcher Building’s FY20 EBIT guidance. Shares in Fletcher Buildings (ASX:FBU) closed 6.1 per cent higher at $3.31 yesterday.

Ex-Dividends

Seek Limited (ASX:SEK) is paying 13 cents fully franked
SG Fleet Group Ltd (ASX:SGF) is paying 6.943 cents fully franked
Seven Group Holdings (ASX:SVW) is paying 21 cents fully franked
Virtus Health Ltd (ASX:VRT) is paying 12 cents fully franked
Webjet Limited (ASX:WEB) is paying 9 cents fully franked

Currencies

One Australian Dollar at 7:50 AM was buying 59.56 US cents, 50.68 Pence Sterling, 66.27 Yen and 55.24 Euro cents.

Commodities

Iron Ore has gained 3.6 per cent to $83.97.
Iron Ore futures suggest a 0.2 per cent gain.
Gold has gained $90.60 to US$1663 an ounce.
Silver has added $1.11 to US$14.38 an ounce.
Oil was up $0.66 to US$24.02 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.