Oil prices drop as Saudi cuts output: ASX poised to open lower

Market Reports

by Rachael Jones

US markets saw rises in health and technology yesterday, but the Australian share market looks set to open lower this morning. The Dow Jones Industrial Average fell as the Nasdaq rose for a sixth straight day. Over in the UK, the government released a 50 page document explaining the more relaxed coronavirus lockdown measures on Monday, although they do warn of ‘large epidemic waves’ of the virus. Wuhan in China reported its first new infections since they ended their 76-day lockdown on April 8. Oil erased gains as Saudi Arabia plans to slash output. They plan to cut another 1 million barrels a day.

Markets

Wall Street closed mixed yesterday: The Dow Jones Industrial Average fell 0.5 per cent to close at 24,222 the S&P 500 closed almost flat at 2930 and the NASDAQ closed 0.78 per cent higher at 9192.

European markets closed mixed: London’s FTSE added 0.06 per cent, Paris lost 1.3 per cent and Frankfurt closed 0.7 per cent lower.

Asian markets closed mixed, Tokyo’s Nikkei gained 1.1 per cent , Hong Kong’s Hang Seng added 1.5 per cent , and China’s Shanghai Composite flat.

Taking all of this into equation, the SPI futures are pointing to a 0.35 per cent fall.

Yesterday, the Australian share market closed 1.3 per cent higher at 5461.

Company news

SkyCity Entertainment Group (ASX:SKC) is set to welcome back staff and customers to their properties in Auckland, Hamilton and Queenstown. The move comes after confirmation from the Government that New Zealand will be moving to COVID-19 Alert Level 2 on Thursday, 14 May. They have developed a new Health Management Framework that is aligned with the Ministry of Health’s recommendations under Alert Level 2. They will create zones on their casino gaming floors to ensure less than 100 guests and staff in a static location at any one time. Seating will be spaced out and entry will be limited initially to members. Shares in SkyCity Entertainment Group (ASX:SKC) closed 4.24 per cent higher at $2.46 yesterday.

Currencies

One Australian Dollar at 7:40 AM was buying 64.91 US cents, 52.65 Pence Sterling, 69.89 Yen and 60.09 Euro cents.

Commodities

Iron Ore is flat at US$88.61
Iron Ore futures suggest a 0.3 per cent fall.
Gold has lost $15.90 to US$1698 an ounce.
Silver has fallen $0.10 to US$15.68 an ounce.
Oil was down $0.60 to US$24.14 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.