Over 10 million file for unemployment benefits in the US: ASX poised to open higher

Market Reports

by Rachael Jones

After a rally from US markets, the Australian share market looks set to open higher. It’s been a rollercoaster of a week as investors monitor the COVID-19 crisis. Over one million people across the world have been infected, with over 51,000 losing their lives. The US now has the most recorded cases. Over 10-million Americans have filed for unemployment benefits since mid-March. It’s reported that President Trump is meeting oil industry executives at the White House today, it’s believed he could ask the industry for help to curb production. He has claimed that Saudi Arabia and Russia will cut their oil production. Oil rose and gold also gained.

Local economic news 

ABS Retail Trade, February 2020.

Markets

Wall Street closed higher yesterday: The Dow Jones Industrial Average gained 2.2 per cent to close 21,413, the S&P 500 added 2.3 per cent to 2527 and the NASDAQ closed up 1.7 per cent to 7487.

European markets closed higher: London’s FTSE added 0.5 per cent, Paris gained 0.3 per cent and Frankfurt closed up 0.3 per cent.

Asian markets closed mixed: Tokyo’s Nikkei dropped 1.4 per cent, Hong Kong’s Hang Seng added 0.8 per cent and China’s Shanghai Composite closed up 1.7 per cent.

Taking all of this into equation, the SPI futures are pointing to a 2.2 per cent gain.

Yesterday, the Australian share market closed almost 2 per cent lower at 5154.

Company news

SkyCity Entertainment Group (ASX:SKC) will immediately cut around 200 jobs in New Zealand, after standing down 90 per cent of its workforce in Australia in Adelaide in an attempts to reduce costs. The company says the Covid 19 crisis has caused "an unprecedented impact on people, businesses and the global economy". They said this is a storm we could, and would, weather if we were to reopen within a few months. Unfortunately, the impact of COVID-19 is not limited to the shortterm consequences of closure. Even when we fully open, we reasonably expect that weaker economies, lower personal disposable income and changed entertainment habits, as well as longer term travel restrictions, will result in us recommencing as a smaller, domestically focused business. Shares in SkyCity Entertainment Group (ASX:SKC) closed 4.25 per cent lower at $1.92.

Currencies

One Australian Dollar at 8:00 AM was buying 60.64 US cents, 48.92 Pence Sterling, 65.40 Yen and 55.85 Euro cents.

Commodities

Iron Ore has gained 1.5 per cent to $83.72.
Iron Ore futures suggest a 2.8 per cent gain.
Gold has gained $2.95 to US$1638 an ounce.
Silver has added $0.67 to US$14.65 an ounce.
Oil was up $4.52 to US$24.83 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.