Following an extended rally from US markets overnight, the Australian share market looks set to open higher this morning. The Nasdaq rose to a record high, and Boeing Co. led gains in the Dow Jones Industrial Average. Oil prices pared gains yesterday, despite OPEC and its allies announcing that production cuts of 9.6 million barrels per day across the group would continue throughout July as the coronavirus pandemic continues to weigh on demand. Saudi Arabia said it wont continue with the cuts after June. The Australian dollar leapt up to over 70 US cents, its highest value since the year began.
Local economic news due out today
NAB business survey for May: conditions and confidence
Wall Street closed higher yesterday: The Dow Jones Industrial Average closed 1.7 per cent higher at 27,572, the S&P 500 added 1.2 per cent to 3232 and the NASDAQ gained 1.1 per cent to 9925.
European markets closed lower, London’s FTSE fell 0.2 per cent, Paris lost 0.4 per cent and Frankfurt closed 0.2 per cent lower.
Asian markets closed higher, Tokyo’s Nikkei gained 1.4 per cent, Hong Kong’s Hang Seng added 0.03 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 0.7 per cent gain.
On Friday, the Australian share market closed 0.1 per cent higher at 5999.
Air New Zealand (ASX:AIZ) CEO Greg Foran laid out an 800-day plan for the airline which will look at how to further cut labour costs, including leave without pay, reduced hours or possibly laying off more people. The carrier will fly fewer passengers and routes, as it targets a return to "healthy profits" by 2022. He expects that by September New Zealand will have well and truly returned to Level 1 after Covid-19 and that Tasman and Pacific Island flying could be returning for leisure and business travellers. Shares in Air New Zealand (ASX:AIZ) closed 8.8 per cent higher at $1.54 on Friday.
One Australian Dollar at 7:45 AM was buying 70.15 US cents, 55.13 Pence Sterling, 76.07 Yen and 62.13 Euro cents.
Iron Ore gained 4.9 per cent to US$105.67.
Iron Ore futures suggest a 0.5 per cent fall.
Gold has gained $22.10 to US$1705.10 an ounce.
Silver has added $0.41 to US$17.89 an ounce.
Oil was down $1.36 to US$38.19 a barrel.