Investor fears over spike in coronavirus cases in the US: ASX to open lower

Market Reports

by Rachael Jones


The Australian share market looks set to open lower this morning following a slump on Wall Street as a new surge of coronavirus cases develop in the US. California, Florida report record cases as NY orders quarantine for some travellers Asia stocks have also dropped as virus worries grow. The Australian dollar was down 0.8 per cent.

Local economic news due out today

ABS job vacancies May

Markets

Wall Street closed lower yesterday: The Dow Jones Industrial Average lost 2.7 per cent to 25,446 the S&P 500 fell 2.6 per cent to 3050 and the NASDAQ closed 2.2 per cent lower at 9909.

European markets closed lower, London’s FTSE fell 3.1 per cent, Paris lost 2.9 per cent and Frankfurt closed 3.4 per cent lower.

Asian markets closed mixed, Tokyo’s Nikkei fell 0.1 per cent, Hong Kong’s Hang Seng closed 0.5 per cent lower, and China’s Shanghai Composite added 0.3 per cent.

Taking all of this into equation, the SPI futures are pointing to a 1.6 per cent fall.

Yesterday, the Australian share market closed 0.2 per cent higher at 5966.

Company news 

Infigen (ASX:IFN) yesterday received a copy of a bidder’s statement from Iberdrola Renewables Australia Pty in relation to its off-market takeover bid to acquire 100 per cent of Infigen for $0.86 per Infigen Stapled Security in cash. The Iberdrola Offer represents a 69.8 pe cent premium to the three month volume weighted average price of Infigen Stapled Securities prior to the announcement of a takeover offer by UAC Energy Holdings) on 3 June 2020 and is at a 7.5 per cent premium to the UAC Offer. The Infigen Directors unanimously recommend that Infigen Security Holders accept the Iberdrola Offer and each Infigen Director intends to accept in the absence of a superior proposal. Shares in Infigen Energy (ASX:IFN) closed 1.7 per cent lower at $0.88 yesterday.

Currencies

One Australian Dollar at 7:45 AM was buying 68.74 US cents, 55.33 Pence Sterling, 73.59 Yen and 61.09 Euro cents.

Commodities

Iron Ore gained 1.6 per cent to US$103.34.
Iron Ore futures suggest a 2.1 per cent gain.
Gold has fallen $6.90 to US$1775 an ounce.
Silver was down 43 cents to US$17.81 an ounce.
Oil has lost $2.36 to US$38.01 a barrel.