Unemployment to peak to 9.25% in the December quarter: Aus shares close 0.3% higher

Market Reports

by Ortenzia Borre

The Australian share market dropped at the open, rose by noon,closing 0.3 per cent up at the end of trade.

Treasurer Josh Frydenberg has delivered his economic update saying the country is experiencing the most severe economic crisis since the Great Depression.

Mr Frydenberg confirmed an $85.8 billion deficit for the last financial year, and an estimated $184 billion deficit for the next financial year, with that figure reflecting the $289 billion the Morrison Government has allocated to stimulus measures including JobKeeper.

The Treasurer says he expects unemployment to peak to 9.25 per cent in the December quarter as 870,000 Australians lost their jobs between March and May.

Meanwhile in Victoria, Premier Daniel Andrews confirmed 403 new Coronavirus cases and 5 deaths in the past 24 hours with NSW recording 19 new infections.

NRW Holdings (ASX:NWH), led the top 200 gains for the day and Nearmap (ASX:NEA) led the losses.

The S&P/ASX200 index

At the closing bell the S&P/ASX 200 index closed 19 points higher to finish at 6,095.

Futures market 

Dow futures are suggesting a rise of 52 points.
S&P 500 futures are eyeing a gain of 9 points.
The Nasdaq futures are eyeing a lift of 79 points.
The ASX200 futures are eyeing a 24 point rise tomorrow morning.

Looking at some more headlines:

Coca-Cola Amatil (ASX:CCL) will reduce the value of its assets by between $160 million and $190 million in its half year accounts. This is in light of the adverse impact of Covid-19 on trading performance.

Tabcorp Holdings (ASX:TAH) begin the search for a new CEO with David Attenborough retiring from the role in early 2021.

Life360's (ASX:360) investor, the ADT Security Corporation, has sold its 10.15 per cent holding in the San Francisco based technology company. 

Best and worst performers of the day

The best performing sector was Real Estate Investment Trusts, adding 2 per cent, while the worst performing sector was Communication Services, shedding 0.5 per cent.

The best performing stock in the S&P/ASX 200 was NRW Holdings (ASX:NWH), rising 8.6 per cent to close at $1.82. Shares in Coca-Cola Amatil (ASX:CCL) and Webjet (ASX:WEB) followed.

The worst performing stock in the S&P/ASX 200 was Nearmap (ASX:NEA), dropping 3.6 per cent to close at $2.40. Shares in Magellan Financial Group (ASX:MFG) and TPG Telecom (ASX:TPG) followed.

Asian markets

Japan’s Nikkei is closed due to a public holiday. Hong Kong’s Hang Seng has gained 0.4 per cent and the Shanghai Composite is 0.6 per cent down.

Commodities and the dollar

Gold is trading at US$1,874 an ounce.
The iron ore price is 0.4 lower at US$110.95.
Its futures are pointing to a fall of 0.4 per cent.
Light crude is US$0.12 up at US$42.02 a barrel.
One Australian dollar is buying 71.55 US cents.