All time highs for big tech companies: ASX poised to open lower


Following a fall from US markets overnight, the Australian share market looks set to open lower this morning. Stocks regained US$21 trillion in value from a March low. The Nasdaq hit a new record with Facebook, Apple, Amazon and Microsoft all hit new all-time highs yesterday as tech rallied back from coronavirus. Oil jumped as fuel demand recovers from April’s collapse brought on by lockdowns to control the pandemic.

Local economic news due out today

Westpac-MI consumer confidence June,
ABS, Housing finance April

Markets

Wall Street closed mixed yesterday: The Dow Jones Industrial Average closed 1.1 per cent lower at 27,272, the S&P 500 lost 0.8 per cent to 3207 and the NASDAQ gained 0.3 per cent to 9954.

European markets closed lower, London’s FTSE fell 2.1 per cent, Paris lost 1.6 per cent and Frankfurt closed 1.6 per cent lower.

Asian markets closed mixed, Tokyo’s Nikkei lost 0.4 per cent, Hong Kong’s Hang Seng added 1.1 per cent, and China’s Shanghai Composite closed 0.6 per cent higher.

Taking all of this into equation, the SPI futures are pointing to a 1.4 per cent fall.

Yesterday, the Australian share market closed 2.4 per cent higher at 6145.

Company news 

Meridian Energy (ASX:MEZ) released a statement saying they are pleased to see a decision has been made by the Electricity Authority on the Transmission Pricing Methodology (TPM) Guidelines in New Zealand, increasing certainty for electricity industry participants and investors after years of debate. The Authority’s decision paper estimates a reduction in Meridian’s annual transmission costs of $26.9 million under the new methodology, expected by the Authority to be from 1 April 2023. That estimate will be subject to development of a detailed pricing methodology by Transpower, as well as actual market conditions in future under the new methodology. Shares in Meridian Energy (ASX:MEZ) closed 1.94 per cent lower at $4.54 yesterday.

Currencies

One Australian Dollar at 7:45 AM was buying 69.57 US cents, 54.67 Pence Sterling, 74.98 Yen and 61.38 Euro cents.

Commodities

Iron Ore lost 1 per cent to US$104.60.
Iron Ore futures suggest a 0.8 per cent fall.
Gold has gained $16.80 to US$1722 an ounce.
Silver has dropped $0.10 to US$17.79 an ounce.
Oil was up $0.75 to US$38.94 a barrel.