There was a strong tech rally in the US overnight pushing the Australian share market to leap upwards this morning. Overnight Apple Inc. set an all-time high and Microsoft Corp. shares gained despite being embroiled in controversy over the video app TikTok. President Donald Trump wants them to buy the Chinese-owned company in its entirety, and suggested the company should pay the US Treasury as part of the deal. Back home Victorian companies assess the impact of stage four restrictions as thousands of businesses are ordered to close for six weeks this Thursday due to the ongoing coronavirus pandemic.
Local Economic News
CoreLogic will release dwelling prices for July,
ABS will release International Trade in Goods and Services, June 2020 and Retail Trade, June 2020.
RBA board decision at 2.30pm
Wall Street closed higher yesterday: The Dow Jones Industrial Average added 0.9 per cent to 26,664 the S&P 500 gained 0.7 per cent to 3295 and the NASDAQ closed 1.5 per cent higher at 10,903.
European markets closed higher, London’s FTSE gained 2.3 per cent, Paris added 1.9 per cent and Frankfurt closed 2.7 per cent higher.
Asian markets closed mixed, Tokyo’s Nikkei added 2.2 per cent, Hong Kong’s Hang Seng lost 0.6 and China’s Shanghai Composite closed 1.8 per cent higher.
Taking all of this into equation, the SPI futures are pointing to a 1.4 per cent gain.
Yesterday, the Australian share market closed 0.03 per cent lower at 5926.
Reliance Worldwide Corporation (ASX:RWC) is assessing the impact the Stage 4 restrictions as a result of the Covid19 pandemic may have on its manufacturing and distribution facilities in Victoria. Certain products are manufactured in Melbourne and exported to RWC’s North American operations, which complements products manufactured by RWC in the US. RWC typically maintains sufficient inventory levels to provide a high level of service to its channel partners and it is anticipated that this inventory will substantially mitigate any supply disruptions. RWC does not currently expect the Victorian Government’s announcement to have any short term impact on sales in North America. Shares in Reliance Worldwide Corporation (ASX:RWC) closed 3.36 per cent lower at $2.59 yesterday.
One Australian Dollar at 7:50 AM was buying 71.27 US cents, 54.52 Pence Sterling, 75.55 Yen and 60.61 Euro cents.
Iron Ore gained 4.9 per cent to US$116.03.
Iron Ore futures suggest a 3.5 per cent gain.
Gold has gained $0.40 to US$1986 an ounce.
Silver was up $0.20 to US$24.42 an ounce.
Oil was up $0.74 to US$41.01 a barrel.