IMF head says global economy has entered recession: ASX poised to open lower

Market Reports

by Rachael Jones

We can expect the sharemarket to start the week lower this morning after Wall Street fell in Friday’s session and the death toll from the coronavirus continues to rise globally. The head of the International Monetary Fund Kristalina Georgieva said on Friday the global economy has now entered a recession that could be as bad or worse than the 2009 downturn. She said there could be a sizable rebound in 2021 but only if nations succeed in containing the coronavirus and limiting the economic damage. Over in the UK its reported their ;ockdown measures could last for months as the death toll is expected to worsen in the next few weeks. Meanwhile in Australia millions will receive an extra $750 in their bank accounts from tomorrow. It’s paid to anyone receiving income support. 

Local economic news due out this week

The week kicks off on Tuesday when the Reserve Bank releases the private sector credit data.
Regular weekly reading on consumer confidence to be published by ANZ and Roy Morgan.

Wednesday

The AiGroup will release March survey results on manufacturing activity

The ABS will release Building Approvals, for February 2020.

And CoreLogic will publish the March results for home prices.

Thursday 
Job Vacancies, Australia, February 2020.

Friday
Retail Trade, Australia, February 2020.

Markets

Wall Street closed lower on Friday: The Dow Jones Industrial Average dropped 4.1 per cent to close at 21,637, the S&P 500 lost 3.4 per cent to close at 2541 and the NASDAQ fell 3.8 per cent to 7502.

European markets closed lower on Friday: London’s FTSE fell 5.3 per cent, Paris shed 4.2 per cent and Frankfurt closed 3.7 per cent lower.

Asian markets closed higher on Friday: Tokyo’s Nikkei gained 3.9 per cent, Hong Kong’s Hang Seng added 0.6 per cent and China’s Shanghai Composite gained 0.3 per cent.

Taking all of this into equation, the SPI futures are pointing to 0.1 per cent gain. On Friday, the Australian share market closed 271 points (5.3 per cent) lower at 4842.

Company news 

Summerset Group Holdings (ASX:SNZ) says all their aged care villages are operating under the level 4 self-isolation requirements as New Zealand brought the alert in response to COVID-19. They are recruiting for caregivers and registered nurses over and above the normal levels of staff they would have to help their residents during this time. At this stage, sales of retirement units have remained at good levels over the last few weeks. The 2020 build rate of 400 units is currently expected to now be in the range of 300 – 350 units. This assumes disruption to construction activity for a period of up to three months. Shares in Summerset Group (ASX:SNZ) closed 3.8 per cent higher at $5.49 on Friday.

Currencies

One Australian Dollar at 8:00 AM was buying 61.60 US cents, 49.63 Pence Sterling, 66.34 Yen and 55.39 Euro cents.

Commodities 

Iron Ore has dropped 0.5 per cent to US$86.36
Iron Ore futures suggest a 0.1 per cent fall.
Gold lost $6.20 to US$1654 an ounce.
Silver was down $0.14 cents to US$14.53 an ounce.
Oil has fallen $1.09 to US$21.51 a barrel.


Ex-Dividends
Apn Industria REIT (ASX:ADI) is paying 4.375 cents unfranked
Australian Unity Off (ASX:AOF) is paying 4 cents unfranked
Aims Pror Sec Fund (ASX:APW) is paying 0.7748 cents unfranked
Apn Conv Retail REIT (ASX:AQR) is paying 5.45 cents unfranked
Aventus Group (ASX:AVN) is paying 1.065 cents unfranked
Australian Enhanced (ASX:AYF) is paying 7 cents 33.69 per cent franked
Boom Logistics (ASX:BOL) is paying 0.5 cents unfranked
Centuria I REIT (ASX:CIP) is paying 4.675 cents unfranked
Chtr H Lwr (ASX:CLW) is paying 7.1 cents unfranked
Cromwell Prop (ASX:CMW) is paying 1.875 cents unfranked
Centuria Office REIT (ASX:COF) is paying 4.45 cents unfranked
Charter Hall Soc In (ASX:CQE) is paying 4.175 cents unfranked
Cyclopharm Limited (ASX:CYC) is paying 0.5 cents unfranked
Elanor Comm Prop (ASX:ECF) is paying 2.87 cents unfranked
Eagle Hlth Hldgs Ltd (ASX:EHH) is paying 0.12 cents unfranked
Gryphon Capital (ASX:GCI) is paying 0.71 cents unfranked
Global Value Fnd Ltd (ASX:GVF) is paying 2.9 cents fully franked
Kirkland Lake Gold (ASX:KLA) is paying 18.7 cents unfranked
Lycopodium Limited (ASX:LYL) is paying 15 cents fully franked
Meridian Energy (ASX:MEZ) is paying 7.34 cents unfranked
Perpetual Cred Trust (ASX:PCI) is paying 0.3264 cents unfranked
Qualitas Re Income (ASX:QRI) is paying 0.7539 cents unfranked
Rural Funds Group (ASX:RFF) is paying 2.7118 cents unfranked
360 Capital Digital (ASX:TDI) is paying 4.5 cents unfranked
360 Capital Grp (ASX:TGP) is paying 1 cents unfranked
360 Capital REIT (ASX:TOT) is paying 2.25 cents unfranked

 

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.