Trump signs for more sanctions on China: ASX poised to open higher

Market Reports

by Rachael Jones

In New York, the Dow lifted over 2 per cent overnight, the Australian share market looks set to open higher this morning. US President Donald Trump yesterday signed legislation to impose sanctions on China in response to its interference with Hong Kong’s autonomy. He’ll also end the preferential treatment Hong Kong has enjoyed. He is set to place new tariffs on Hong Kong and says he will offer no special economic treatment. This is in response to Beijing’s national security law. Back home we can expect large dividend cuts due to the coronavirus pandemic.

Local economic news

WBC-MI Consumer Confidence July

Markets

Wall Street closed higher yesterday: The Dow Jones Industrial Average gained 2.1 per cent to 26,643 the S&P 500 added 1.3 per cent to 3198 and the NASDAQ closed 0.9 per cent higher at 10,489.

European markets closed mixed, London’s FTSE gained 0.1 per cent, Paris lost 1 per cent and Frankfurt closed 0.8 per cent lower.

Asian markets closed lower, Tokyo’s Nikkei fell 0.9 per cent, Hong Kong’s Hang Seng lost 1.1 and China’s Shanghai Composite closed 0.8 per cent lower.

Taking all of this into equation, the SPI futures are pointing to a 28 point rise gain.

Yesterday, the Australian share market closed 0.6 per cent lower or 36 points lower at 5,941.

Company news

New Zealand energy company Contact Energy (ASX:CEN) has made two changes to its leadership team with the appointment of James Kilty as Deputy Chief Executive Officer and Jacqui Nelson as Chief Generation Officer. James Kilty will take responsibility for development and demand growth. James has over 20 years of experience in energy markets. Jacqui Nelson has been appointed as Chief Generation Officer with responsibility for operations and energy market trading. Jacqui has been with Contact for more than 15 years in a wide range of roles across finance, resource management, trading and most recently as General Manager of Operations. Shares in Contact Energy (ASX:CEN) closed 1.1 per cent lower at $5.40 yesterday.

Currencies

One Australian Dollar at 7:45 AM was buying 69.78 US cents, 55.61 Pence Sterling, 74.83 Yen and 61.20 Euro cents.

Commodities

Iron Ore futures suggest a 0.4 per cent fall.
Gold has lost $0.70 to US$1813 an ounce.
Silver was down 26 cents to US$19.53 an ounce.
Oil has added $0.19 to US$40.29 a barrel.
 

Rachael Jones

Finance News Network
Rachael comes to FNN after working for Fairfax Media covering international breaking news, including the global economy and politics. She joined FNN in February 2018. She has reported on Australia’s finance news for various organisations since 2000 and has also interviewed a number of key business players, including Bill Gates. Rachael has also worked across a number of countries, including the UK and the US.