US markets close up: Australian share market set to open higher

Market Reports

by Ortenzia Borre

Following positive leads from US markets, the Australian share market set to open higher this morning. 

Air travel won't return to pre-crisis levels until 2023, International Air Transport Association chief Alexandre de Juniac told CNBC. Mr Juniac told the network demand for air travel had dropped more than 90% across Europe and the U.S. since the start of the pandemic, warning recovery will be even slower if lockdowns and travel restrictions are extended.

On the back of yesterday’s Australian ABS figures, American’s received $48.4 billion in total unemployment benefits in April, according to their Treasury Department statistics with almost 3 million people filing for unemployment.

To the figures from around the globe

Wall Street closed higher: The Dow Jones Industrial Average gained 1.6 per cent to close at 23,625 the S&P 500 added 1.2 per cent to close at 2853 and the NASDAQ closed 0.9 per cent higher at 8944.

European markets closed lower: London’s FTSE lost 2.8 per cent, Paris dropped 1.7 per cent and Frankfurt closed 1.95 per cent lower.

Asian markets 

Tokyo’s Nikkei fell 1.7 per cent, Hong Kong’s Hang Seng lost 1.5 per cent and China’s Shanghai Composite closed 0.96 per cent lower.

Taking all of this into equation, the SPI futures are pointing to a 0.85 per cent gain.

Yesterday, the Australian share market closed 1.7 per cent lower at 5329.

Company news

Jeweller Michael Hill (ASX:MHJ) will reopen 100 stores across Australia and 25 in New Zealand from this Saturday. In March the company announced the closure of more than 300 stores due to the COVID pandemic. In addition, the jeweller announced that their CEO, Daniel Bracken, has recently undergone surgery and will undertake a reduced work load. Mr Bracken said the surge in their digital sales signals a notable shift in consumer behaviour in the jewellery category and the company has been quick to respond and harness the opportunity. Shares in Michael Hill International (ASX:MHJ) closed 4.35 per cent higher at $0.36 yesterday.

Turning to currencies

One Australian Dollar at 7:30 AM was buying 64.64 US cents, 52.86 Pence Sterling, 69.33 Yen and 59.85 Euro cents.

To Commodities

Iron Ore gained 0.6 per cent to US$92.17.
Iron Ore futures suggest a 0.2 per cent gain.
Gold has gained $21.70 to US$1738 an ounce.
Silver has added $0.53 to US$16.20 an ounce.
Oil was up $2.36 to US$27.65 a barrel.