Commodities boost sees market set to rise: ASX to open higher


The Australian share market looks set to open higher this morning thanks to gains in commodities and Wall Street closing higher overnight. All three major benchmarks closed higher in the US with shares in Disney and Boeing leaping up. Over in the UK, the Bank of England will announce its latest monetary policy decision before the opening bell today as they navigate a loosening of lockdown measures and crucial Brexit talks with the EU. Gold surged and oil prices recovered.

Markets

Wall Street closed higher yesterday: The Dow Jones Industrial Average added 1.4 per cent to 27,202 the S&P 500 gained 0.6 per cent to 3328 and the NASDAQ closed 0.5 per cent higher at 10,998.

European markets closed higher, London’s FTSE gained 1.1 per cent, Paris added 0.9 per cent and Frankfurt closed 0.5 per cent higher.

Asian markets closed mixed, Tokyo’s Nikkei lost 0.3 per cent, Hong Kong’s Hang Seng gained 0.6 per cent and China’s Shanghai Composite closed 0.2 per cent higher.

Taking all of this into equation, the SPI futures are pointing to a 0.5 per cent gain.

Yesterday, the Australian share market closed 0.6 per cent lower at 6001.

European markets closed mixed, London’s FTSE added 0.04 per cent, Paris gained 0.6 per cent and Frankfurt closed 0.1 per cent lower.

Company news

ELMO Software (ASX:ELO) today announced results for the full year ending 30 June 2020, reporting strong growth in annualised recurring revenue of 19.7 per cent to a record $55.1 million. This figure was driven primarily by organic growth from new and existing customers. Statutory revenue rose 25.0 per cent to $50.1 million and over 97 per cent of revenue was subscription based, which is recurring in nature. ELMO’s customer base grew 25.4 per cent over the year. Shares in ELMO Software (ASX:ELO) closed 2.19 per cent higher at $7.00 yesterday.

Currencies

One Australian Dollar at 7:30 AM was buying 71.95 US cents, 54.85 Pence Sterling, 75.95 Yen and 60.64 Euro cents.

Commodities

Iron Ore gained 0.2% to US$118.10.
Iron Ore futures suggest a 2.6 per cent gain.
Gold has gained $32 to US$2053 an ounce.
Silver was up $1.05 to US$27.08 an ounce.
Oil was up $0.50 to US$42.20 a barrel.