AUD jumps 1.5% against the USD: ASX poised to open higher

Market Reports

by Rachael Jones

Following gains from US markets overnight, the Australian share market looks set to open higher this morning. Around the world stock markets have hit their highest levels since March as signs of a global economic recovery from Covid-19 offset concerns over civil unrest in the US. China’s central bank vice governor has said that more policy support will be needed as a result of the virus. Over in the UK house prices dropped the most since 2009. Back home, the Aussie dollar lifted by another 1.5 per cent overnight, a level not seen since mid-January.

Local economic news

AiG performance of construction May,
First quarter GDP at 11.30am AEST,
ABS Building approvals April

Markets

Wall Street closed higher yesterday: The Dow Jones Industrial Average gained 1.1 per cent to close at 25,743 the S&P 500 closed added 0.8 per cent to close at 3081 and the NASDAQ gained 0.6 per cent lower at 9608.

European markets closed higher: London’s FTSE added 0.9 per cent, Paris gained 2 per cent and Frankfurt added 3.8 per cent.

Asian markets closed higher, Tokyo’s Nikkei gained 1.2 per cent, Hong Kong’s Hang Seng added 1.1 per cent, and China’s Shanghai Composite gained 0.2 per cent.

Taking all of this into equation, the SPI futures are pointing to a 31 point rise.

Yesterday, the Australian share market closed 16 points higher at 5835.

Company news 

As previously announced, SkyCity (ASX:SKC) re-opened its New Zealand casino, entertainment and accommodation facilities on 14 May 2020 and although early trade has been positive, SkyCity expects their restructure and a reduction of the workforce be complete by the middle of this month. The company expects total annualised cost savings of around NZ$50 million once the full restructuring has been implemented for both salaried employees and rostered (waged) employees (around 900 in total). SkyCity’s Adelaide Casino remains closed. However, based on the South Australian Government’s current three-stage approach to easing the Covid-19 restrictions, they expect to be able to re-open some food and beverage outlets from next week and Adelaide Casino in late June or early July 2020. Shares in SkyCity (ASX:SKC) closed 0.8 per cent lower at $2.39.

Currencies

One Australian Dollar at 8:00 AM was buying 68.91 US cents, 54.93 Pence Sterling, 74.88 Yen and 61.70 Euro cents.

Commodities

Iron Ore is gained 0.9 per cent at $101.32.
Iron Ore futures suggest a 0.1 per cent fall.
Gold has gained $0.10 to US$1734 an ounce.
Silver has added $0.13 to US$8.39 an ounce.
Oil was down $0.06 to US$36.87 a barrel.