Dr Fauci warns of 'real risk' if businesses open too soon: 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. Wall Street saw stocks fall sharply yesterday after some recent strong gains. Investors are re-evaluating the latest attempts to open the economy. In America, Dr Anthony Fauci warned United States Congress there is a 'real risk' of outbreak if states reopen too soon. There are reports of new clusters of infections across China, South Korea and Germany, where lockdowns had been lifted. The Australian dollar slipped to US64.7.

Local economic news 

ABS - Wage Price Index, March 2020.
WBC-MI consumer confidence May.

Markets

Wall Street closed lower yesterday: The Dow Jones Industrial Average fell 1.9 per cent to close at 23,765 the S&P 500 closed dropped 2.1 per cent to close at 2870 and the NASDAQ closed 2.1 per cent lower at 9003.

European markets closed mixed: London’s FTSE added 0.9 per cent, Paris lost 0.4 per cent and Frankfurt closed 0.1 per cent lower.

Asian markets closed mixed, Tokyo’s Nikkei fell 0.1 per cent, Hong Kong’s Hang Seng dropped 1.5 per cent, and China’s Shanghai Composite closed 0.1 per cent lower.

Taking all of this into equation, the SPI futures are pointing to a 1.26 per cent fall.

Yesterday, the Australian share market closed 1.1 per cent lower at 5403.

Company news

Spark New Zealand (ASX:SPK) welcomed the announcement of the direct allocation process of 5G spectrum. Spark CEO Jolie Hodson said the allocation enables a significant investment in 5G infrastructure across the country over the coming year, which will play a critical role in New Zealand’s response to and recovery from Covid-19. Work done for Spark by NERA Economic Consulting estimates that the rollout of 5G in New Zealand could add between $5.7 billion and $8.9 billion per year to the New Zealand economy over the next 10 years. Shares in Spark New Zealand (ASX:SPK)

Currencies

One Australian Dollar at 7:40 AM was buying 64.74 US cents, 52.81 Pence Sterling, 69.36 Yen and 59.69 Euro cents.

Commodities

Iron Ore is 3.4 per cent higher at US$91.67.
Iron Ore futures suggest a 1.1 per cent gain.
Gold has gained $7.50 to US$1706 an ounce.
Silver has added $0.03 to US$15.71 an ounce.
Oil was up $1.20 to US$25.34 a barrel.