Some states could lift coronavirus restrictions sooner than others: ASX poised to open lower

Market Reports

by Rachael Jones

Following weak leads from US markets, the Australian share market looks set to open lower this morning. Britain and New York state have reported their worst daily death tolls since the coronavirus pandemic began. World leaders are sending their wishes for a speedy recovery to British Prime Minister Boris Johnson who is in intensive care with coronavirus. China says they haven’t had any new deaths for the first time since the pandemic emerged in December. Back home, Prime Minister Scott Morrison says Australia's economic recovery will begin with a be a series of "trials", with some states moving faster than others in lifting COVID-19 shutdown restrictions.

Local economic news

Lending Indicators, February 2020 from ABS

Markets

Wall Street closed lower yesterday: The Dow Jones Industrial Average fell 0.1 per cent to close 22,654 the S&P 500 dropped 0.2 per cent to 2659 and the NASDAQ closed down 0.3 per cent to 7887.

European markets closed higher: London’s FTSE added 2.2 per cent, Paris gained 2.1 per cent and Frankfurt closed up 2.8 per cent.

Asian markets closed higher: Tokyo’s Nikkei gained 2.01 per cent, Hong Kong’s Hang Seng added 2.1 per cent and China’s Shanghai Composite closed up 2.1 per cent.

Taking all of this into equation, the SPI futures are pointing to a 1 per cent fall.

Yesterday, the Australian share market closed 0.65 per cent lower at 5252.

Company news 

Infratil (ASX:IFT) reports that the Longroad Energy has the closed the financing and started construction of its Little Bear Solar project, comprising four separate projects totalling 215 MW in Fresno County in California. Longroad Energy, a US-based renewable energy developer, owner and operator also announced that two Danish pension funds, PKA and PenSam, are investing in 50 percent of the equity interests of both Little Bear Solar and Prospero I Solar, the 379 MW solar project in Texas. Shares in Infratil (ASX:IFT) closed 2 per cent higher at $4.08 yesterday.

Currencies

One Australian Dollar at 7:45 AM was buying 61.76 US cents, 50.11 Pence Sterling, 67.19 Yen and 56.71 Euro cents.

Commodities

Iron Ore has lost 0.7 per cent to $82.73
Iron Ore futures suggest a 0.1 per cent gain.
Gold has fallen $14.20 to US$1680 an ounce.
Silver has added $0.14 to US$15.31 an ounce.
Oil was down $1.82 to US$24.26 a barrel.