Tensions rise between the US and China once again: ASX poised to open higher

Market Reports

by Rachael Jones

The Australian share market looks set to open slightly higher this morning despite tensions rising between the US and China. The United States has ordered China to close its consulate in Houston, as President Donald Trump ramps up pressure against China ahead of the November election. Microsoft revenue grew 13 per cent despite the coronavirus pandemic. Back home, the Australian dollar jumped to 71.4 US cents, its highest value since April 2019. It also climbed against other major currencies. 

Markets

Wall Street closed higher yesterday: The Dow Jones Industrial Average added 0.6 per cent to 27,006, the S&P 500 gained 0.6 per cent to 3276 and the NASDAQ closed 0.2 per cent higher at 10,706.

European markets closed lower, London’s FTSE fell 1 per cent, Paris lost 1.3 per cent and Frankfurt closed 0.5 per cent lower.

Asian markets closed mixed, Tokyo’s Nikkei lost 0.6 per cent, Hong Kong’s Hang Seng dropped 2.3 and China’s Shanghai Composite closed 0.4 per cent higher.

Taking all of this into equation, the SPI futures are pointing to a 0.1 per cent gain.

Yesterday, the Australian share market closed 1.3 per cent lower at 6075.

Company news

The Westpac Group (ASX:WBC) today announced the appointment of Anthony Miller as Chief Executive, Westpac Institutional Bank. He has over 20 years’ experience in corporate and institutional banking and joins Westpac from Deutsche Bank in Sydney, where he has been Chief Executive Officer, Australia and New Zealand and co-head of the Investment Bank in Asia Pacific. Prior to this, Mr Miller was at Goldman Sachs based in Hong Kong and a partner in the Financing Group for Asia Pacific. He is due to commence his role later this year. Shares in Westpac Banking (ASX:WBC) closed 0.61 per cent lower at $18.01 yesterday.

Currencies

One Australian Dollar at 7:50 AM was buying 71.40 US cents, 56.10 Pence Sterling, 76.54 Yen and 61.71 Euro cents.

Commodities

Iron Ore lost 0.4 per cent to US$110.95.
Iron Ore futures suggest a 0.4 per cent gain.
Gold has added $27 to US$1871 an ounce.
Silver was up $1.78 cents to US$23.34 an ounce.
Oil was down $0.03 to US$41.89 a barrel.

You can find details on our website about this month’s Investor Event on 28th July.