US stocks slump on Jerome Powell's remarks: ASX poised to open lower

Market Reports

by Rachael Jones

Following a fall from US markets overnight, the Australian share market looks set to open lower this morning. The slump on Wall Street came after Federal Reserve chair Jerome Powell warned that the economic risks from coronavirus are significant. Tensions between the US and China flared once again as US President Donald Trump tweeted about trade deals not making a difference to the lives lost from what he called the ‘Plague from China’. Back home last night, the NSW Government announced it would allow pubs and clubs with attached restaurants and bistros to reopen from today, bringing them in line with cafes and restaurants.

Local economic news due out today

Labour Force, April 2020 from the Australian Bureau of Statistics.

Markets

Wall Street closed lower yesterday: The Dow Jones Industrial Average fell 2.2 per cent to close at 23,248 the S&P 500 closed dropped 1.8 per cent to close at 2820 and the NASDAQ closed 1.6 per cent lower at 8863.

European markets closed lower: London’s FTSE lost 1.5 per cent, Paris dropped 2.9 per cent and Frankfurt closed 2.6 per cent lower.

Asian markets closed mixed, Tokyo’s Nikkei fell 0.5 per cent, Hong Kong’s Hang Seng lost 0.3 per cent, and China’s Shanghai Composite closed 0.2 per cent higher.

Taking all of this into equation, the SPI futures are pointing to a 1.1 per cent fall.

Yesterday, the Australian share market closed 0.4 per cent higher at 5422.

Company news

The Woolworths Group (ASX:WOW) has successfully priced $400 million of senior unsecured five year notes and $600 million of ten year notes under its Euro Medium Term Note Programme. They do not qualify for retail investor distribution. The Notes were priced at 1.85 per cent for the five year notes and 2.80 per cent for the ten year notes, and settlement is expected to occur on 20 May 2020. Woolworths Group will use the proceeds from the Notes for the refinancing of future debt maturities of approximately $1 billion later in calendar year 2020. Shares in the Woolworths Group (ASX:WOW) closed 0.06 per cent higher at $35.04 yesterday.

Currencies

One Australian Dollar at 7:40 AM was buying 64.57 US cents, 52.79 Pence Sterling, 69.15 Yen and 59.70 Euro cents.

Commodities

Iron Ore futures suggest a 0.9 per cent gain.
Gold has gained $16.60 to US$1723 an ounce.
Silver has added $0.05 to US$15.76 an ounce.
Oil was down $0.26 to US$25.52 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.