Market optimism in the US as more businesses reopen: ASX poised to open lower

Market Reports

by Rachael Jones

Despite a rise in US markets overnight, the Australian share market looks set to open lower this morning. Wall Street didn’t reach its session highs but there was optimism in the US as more and more states eased coronavirus restrictions. Major tech stocks were down. European markets could move on the back of a new coronavirus stimulus package. Back home the Government is set to hold a number of consultations on Australia’s industrial relations system ahead of the October Budget.

Local economic news

The Australian Bureau of Statistics will release figures for International Merchandise Trade: for April 2020 and Construction Work Done, Preliminary, March 2020.


Wall Street closed higher yesterday: The Dow Jones Industrial Average gained 2.2 per cent to close at 24,995, the S&P 500 closed 1.2 per cent higher at 2992 and the NASDAQ added 0.2 per cent to 9340.

In European markets closed higher, London’s FTSE gained 1.2 per cent, Paris added 1.5 per cent and Frankfurt closed 1.0 per cent higher.

Asian markets closed higher, Tokyo’s Nikkei gained 2.6 per cent, Hong Kong’s Hang Seng added 1.9 per cent, and China’s Shanghai Composite closed 1.01 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 2.9 per cent higher at 5780.

Company news 

AngloGold Ashanti (ASX:AGG) has temporarily closed its Mponeng mine in South Africa after 164 workers tested positive for coronavirus. 651 tests were completed and in the vast majority of these cases, the individuals that tested positive were asymptomatic, with the rest showing very mild symptoms. The initiative was undertaken following the detection of a positive case at the mine last week. Operations continue to be voluntarily suspended to enable contact tracing and deep cleaning and sanitisation of workplaces and key infrastructure. Shares in Anglogold Ashanti (ASX:AGG) closed 0.5 per cent lower at $7.96 yesterday.


One Australian Dollar at 7:45 AM was buying 66.50 US cents, 53.92 Pence Sterling, 71.53 Yen and 60.59 Euro cents.


Iron Ore fell 2.4 per cent to US$95.28.
Iron Ore futures suggest a 2.6 per cent fall.
Gold has fallen $25.30 to US$1728 an ounce.
Silver was down $0.10 to US$17.60 an ounce.
Oil was up $1.10 to US$34.35 a barrel.

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