$19.1 billion early super payments made: ASX poised to open higher

Market Reports

by Rachael Jones

Following gains from US and European markets overnight, the Australian share market looks set to open higher this morning. The virus vaccine is inspiring more bullish emotions. China has reportedly summoned the US ambassador regarding the Hong Kong Autonomy act signed on Tuesday by US President Donald Trump. Back home the latest APRA figures show there have been around 2.7 million early withdrawals from superannuation as Australians were able to take out $20,000 of their super during Covid. The European Central Bank meets to set monetary policy tpday. Elsewhere in markets, oil gained after reports of a drop in US crude stockpiles.

Local economic news

ABS Labour Force June

Markets

Wall Street closed higher yesterday: The Dow Jones Industrial Average gained 0.9 per cent to 26,870, the S&P 500 added 0.9 per cent to 3,227 and the NASDAQ closed 0.6 per cent higher at 10,550.

European markets closed higher, London’s FTSE gained 1.8 per cent, Paris added 2 per cent and Frankfurt closed 1.8 per cent higher.

Asian markets closed mixed, Tokyo’s Nikkei added 1.6 per cent, Hong Kong’s Hang Seng added 0.01 and China’s Shanghai Composite closed 1.6 per cent lower.

Taking all of this into equation, the SPI futures are pointing to a 22 point rise.

Yesterday, the Australian share market closed 1.9 per cent higher or 112 points higher at 6,053.

Company news

Having temporarily closed all stores in late March 2020 due to Covid-19 restrictions, with a staggered reopening of stores since May 2020, Michael Hill International Limited (ASX:MHJ) reports adjusted same store sales for the quarter were down 4.1 per cent, against the prior year. Digital sales reach new highs for the quarter, online sales were up 193 per cent against prior year, delivering some of the highest weeks in the Company’s history. For the year, digital channels represented 4.6 per cent of total sales (FY19: 2.8%). Eleven under-performing stores were permanently closed during the quarter (7 in Australia, 3 in New Zealand and 1 in Canada), with a network total of 290 stores across all markets. Shares in Michael Hill International Limited (ASX:MHJ) yesterday closed 3.2 per cent lower at $0.31.

Currencies

One Australian Dollar at 8:00 AM was buying 70.11 US cents, 55.71 Pence Sterling, 74.99 Yen and 61.45 Euro cents.

Commodities

Iron Ore futures suggest a fall of 0.1 per cent.
Gold has gained $0.40 to US$1,814 an ounce.
Silver was up 23 cents to US$19.76 an ounce.
Oil has added $0.91 to US$41.20 a barrel.