Record jump in US retail sales: ASX poised to open higher

Market Reports

by Rachael Jones


Australian share market looks set to open higher this morning. Stocks in the US rose yesterday as they saw a record jump in retail sales. Also there were positive trial results from a potential coronavirus treatment and hopes of more stimulus. Meanwhile, the International Monetary Fund forecast back in April a contraction of 3 per cent for the global economy in 2020. They report that the current crisis is “unlike anything the world has seen before.” Despite some economies beginning to reopen, the fund has warned that the decline could be even worse than that of the Great Depression.

Local economic news due out today

WBC leading index for May

Markets

Wall Street closed higher yesterday: The Dow Jones Industrial Average gained 2.04 per cent to 26,290 the S&P 500 added 1.9 per cent to 3125 and the NASDAQ closed 1.8 per cent higher at 9896.

European markets closed higher, London’s FTSE gained 2.9 per cent, Paris added 2.8 per cent and Frankfurt closed 3.4 per cent higher.

Asian markets closed higher, Tokyo’s Nikkei gained 4.9 per cent, Hong Kong’s Hang Seng closed 2.4 per cent higher, and China’s Shanghai Composite added 1.4 per cent.

Taking all of this into equation, the SPI futures are pointing to a 0.5 per cent gain.

Yesterday, the Australian share market closed 3.9 per cent higher at 5942.

Company news 

The Breville Group (ASX:BRG) is pleased to announce the successful completion of the $10 million underwritten Share Purchase Plan it announced on Wednesday, 13 May 2020. The SPP follows the successful completion of Breville’s fully underwritten $94 million placement to eligible institutional investors. The SPP and Placement were both undertaken at an issue price of $17.00 per share. Shares in Breville Group (ASX:BRG) closed 5.5 per cent higher at $22.53 yesterday.

Currencies

One Australian Dollar at 7:40 AM was buying 68.79 US cents, 54.74 Pence Sterling, 73.84 Yen and 61.12 Euro cents.

Commodities

Iron Ore gained 1.4 per cent to US$104.85.
Iron Ore futures suggest a 1.2 per cent fall.
Gold has gained $9.30 to US$1737 an ounce.
Silver was up 25 cents to US$17.65 an ounce.
Oil has gained $1.26 to US$38.38 a barrel.