Investors await RBA statement: ASX to open higher

Market Reports

by Rachael Jones

Following a buying spree from US markets, the Australian share market looks set to open higher this morning. Crude oil gained for a fourth consecutive day. Stocks were lower during much of yesterday’s session after tensions escalated between the Trump administration and China, but energy, information technology and utilities gained with a late session rally. Italy began to reopen its economy after two months, Russia reported more than 10,000 new infections for a second day. New Zealand had no new cases for the first time since March and Hong Kong may soon reopen cinemas and gyms.

Local economic news 

The Reserve Bank Board meets but no change in settings is expected. Already maximum monetary stimulus is being applied. The ABS’ weekly payroll jobs and wages data is due and the Federal Chamber of Automotive Industries issues the April car sales data. The AiGroup releases its construction index.

Markets

Wall Street closed higher yesterday: The Dow Jones Industrial Average added 0.1 per cent to close 23,750 the S&P 500 gained 0.4 per cent to 2843 and the NASDAQ closed 1.2 per cent higher at 8711.

European markets closed lower: London’s FTSE fell 0.2 per cent, Paris lost 4.2 per cent and Frankfurt closed 3.6 per cent lower.

In Asian markets, Hong Kong’s Hang Seng lost 4.2 per cent , while Tokyo’s Nikkei and China’s Shanghai Composite were closed.

Taking all of this into equation, the SPI futures are pointing to a 0.3 per cent gain.

Yesterday, the Australian share market closed 1.4 per cent higher at 5320.

Company news 

Today Centuria Capital (ASX:CNI) has agreed to acquire an initial 19 per cent interest in Augusta Capital, New Zealand’s leading listed real estate funds manager. They have an opportunity to increase its holdings to 24.99 per cent through an Entitlement Offer Sub Underwriting. Augusta is undertaking a NZD $45 million equity raising to strengthen its balance sheet and provide capital for new opportunities. Post-transaction, Centuria’s cash reserves will be circa AUD $120 million. Centuria’s FY20 Operating NPAT guidance is maintained at 11.5cps and FY20 distribution guidance remains 9.7cps. Shares in Centuria Capital (ASX:CNI) closed 1.3 per cent higher at $1.55 yesterday

Currencies

One Australian Dollar at 8:00 AM was buying 64.27 US cents, 51.67 Pence Sterling, 68.61 Yen and 58.96 Euro cents.

Commodities

Iron Ore is flat at US$84.04
Iron Ore futures suggest a 2.5 per cent gain.
Gold has added $12.40 to US$1713 an ounce.
Silver has fallen $0.14 to US$14.80 an ounce.
Oil was up $0.61 to US$20.39 a barrel.