Global rally slows: ASX poised to dip at the open

Market Reports

by Rachael Jones

Following a fall from US markets overnight, the Australian share market looks set to open lower this morning. The global rally slowed with European shares slipping alongside US futures. The Shanghai Composite climbed for a sixth day. Yesterday our official cash rate was left at 0.25 per cent for another month –most experts predict it will stay at that historic low for some time yet.


Wall Street closed lower yesterday: The Dow Jones Industrial Average fell 1.5 per cent to 25,890, the S&P 500 lost 1.1 per cent to 3145 and the NASDAQ closed 0.9 per cent lower at 10,344.

European markets closed lower, London’s FTSE fell 1.5 per cent, Paris lost 0.7 per cent and Frankfurt closed 0.9 per cent lower.

Asian markets closed mixed, Tokyo’s Nikkei fell 0.4 per cent, Hong Kong’s Hang Seng lost 1.4 and China’s Shanghai Composite closed 0.4 per cent higher.

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

Yesterday, the Australian share market closed 0.03 per cent lower at 6013.

Company news

SkyCity Entertainment Group (ASX:SKC) says its $50 million share purchase plan, which closed on 3 July 2020, received strong shareholder support with total applications of approximately $45.6 million, a 91 per cent take-up. The SPP was part of SkyCity’s funding plan and equity raising announced on 17 June 2020, which also included a $180 million institutional placement. The new shares under the SPP will be issued at a price of NZ$2.38 (A$2.24), being a 2.5 per cent discount to the five-day volume weighted average price of SkyCity’s shares traded on the NZX during the last five days of the SPP offer period (including the closing date), rounded down to the nearest cent. Shares in SkyCity Entertainment Group (ASX:SKC) closed 0.42 per cent lower at $2.38 yesterday.


One Australian Dollar at 7:45 AM was buying 69.46 US cents, 55.37 Pence Sterling, 74.69 Yen and 61.63 Euro cents.


Iron Oren gained 1.7 per cent to US$103.01.
Iron Ore futures suggest a 2.2 per cent gain.
Gold has gained $16.40 to US$1810 an ounce.
Silver was up 12 cents to US$18.70 an ounce.
Oil has lost $0.01 to US$40.62 a barrel.