The US could see a second $US2trn stimulus package: ASX set to open higher

Market Reports

by Rachael Jones

The Australian share market looks set to open higher as US stocks fluctuated between gains and losses yesterday as global cases of coronavirus passed 800,000 and the death toll standing at almost 40,000 people. Investors considered the longer-than-expected economic recovery. In the US President Donald Trump has called for second $US2 trillion stimulus package. Back home, the federal government's $130 billion JobKeeper package has attracted almost 300,000 business subsidy registrations in the first two days. Copper prices rose on Tuesday after data showed an unexpected rebound in factory activity in China. Oil continues to fall and safe haven gold has dropped.

Local economic news 

ABS Building Approvals, February 2020.

CoreLogic publishes the March results for home prices

Markets

Wall Street closed lower yesterday: The Dow Jones Industrial Average dropped 1.8 per cent to close 21,917, the S&P 500 fell 1.6 per cent to 2585 and the NASDAQ shed almost 1 per cent to 7700.

European markets closed higher: London’s FTSE gained almost 2 per cent, Paris added 0.4 per cent and Frankfurt closed up 1.2 per cent.

Asian markets closed mixed: Tokyo’s Nikkei dropped 0.9 per cent, Hong Kong’s Hang Seng gained 1.9 per cent and China’s Shanghai Composite added 0.1 per cent.

Taking all of this into equation, the SPI futures are pointing to a 1.4 per cent gain.

Yesterday, the Australian share market closed over 2 per cent lower at 5077.

Company news 

New Zealand electricity company Meridian Energy (ASX:MEZ) has confirmed that Rio Tinto has not yet provided any update on the Strategic Review of the Tiwai Point Aluminium Smelter they own. Rio Tinto announced in October 2019 it would undertake a Strategic Review of its New Zealand operations, indicating it would provide an update by the end of the first quarter of 2020. Meridian has worked with the Smelter owners to offer amendments to its existing electricity contract, including options for two different tranches of volume. Shares in Meridian Energy (ASX:MEZ). Shares in Meridian Energy (ASX:AIZ) closed 4.7 per cent higher at $4.02.

Currencies

One Australian Dollar at 7:40 AM was buying 61.48 US cents, 49.55 Pence Sterling, 66.09 Yen and 55.75 Euro cents.

Commodities

Iron Ore has gained 0.4 per cent to $83.32.
Iron Ore futures suggest a 0.3 per cent gain.
Gold has dropped $51.60 to US$1592 an ounce.
Silver has gained $0.02 to US$14.15 an ounce.
Oil was down $0.02 to US$20.07 a barrel.