Trump vows to keep US open during second wave of Covid-19: ASX poised to open lower

Market Reports

by Rachael Jones

Following a fall in US markets overnight, the Australian share market looks set to open lower this morning. Mining stocks pulled the market down yesterday after reports changes to China's rules around inspecting iron ore could hit Australian exporters. In the US, President Donald Trump has said he will not close the country if a second wave of coronavirus infections hits.Trade tension between the US and China also contributed to market weakness.


Wall Street closed lower yesterday: The Dow Jones Industrial Average fell 0.41 per cent to close at 24,474 the S&P 500 closed dropped 0.8 per cent to close at 2949 and the NASDAQ closed 1 per cent lower at 9285.

European markets closed lower: London’s FTSE lost 0.9 per cent, Paris dropped 1.2 per cent and Frankfurt closed 1.4 per cent lower.

Asian markets closed lower, Tokyo’s Nikkei fell 0.2 per cent, Hong Kong’s Hang Seng lost 0.5 per cent, and China’s Shanghai Composite closed 0.6 per cent lower.

Taking all of this into equation, the SPI futures are pointing to a 2 point fall.

Yesterday, the Australian share market closed 23 points or 0.4 per cent lower at 5550.

Company news

Real estate investor and manager, Cromwell Property Group (ASX:CMW) has settled the sale of a 50 per cent stake in 475 Victoria Avenue, Chatswood to a private fund managed by BlackRock for $120 million. The address comprises two 13-level office buildings, ground floor retail and three levels of basement parking. Cromwell has an existing development application on the site for a new office building, hotel and additional amenity and, in partnership with BlackRock, will now examine ways to further increase the value of the asset. Shares in the Cromwell Property Group (ASX:CMW) closed 3.4 per cent higher at $0.77.


One Australian Dollar at 7:00 AM was buying 65.67US cents, 53.74 Pence Sterling, 70.66 Yen and 59.99 Euro cents.


Iron Ore futures suggest a 2.8 per cent gain.
Gold has gained $3.90 to US$1726 an ounce.
Silver has added $0.09 to US$17.46 an ounce.
Oil was up $0.14 to US$34.06 a barrel.

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