US consumers spend $211 billion in online shopping boost: ASX poised to open lower

Market Reports

by Rachael Jones

The Australian share market looks set to open slightly lower this morning after US stock futures were flat in overnight trading. The S&P 500 hit its highest level ever, a huge come back after the coronavirus losses. The US reports that e-commerce sales grew more than 30 per cent between the first and second quarter of 2020, that's according to the US Department of Commerce. Consumers spent $211.5 billion online during the second quarter.

Local Economic News

WBC leading index July

Markets

Wall Street closed mixed yesterday: The Dow Jones Industrial Average lost 0.2 per cent to 27,778 the S&P 500 gained 0.2 per cent to 3390 and the NASDAQ closed 0.7 per cent higher at 11,211.

European markets closed lower, London’s FTSE lost 0.8 per cent, Paris fell 0.7 per cent and Frankfurt closed 0.3 per cent lower.

Asian markets closed mixed, Tokyo’s Nikkei fell 0.2 per cent, Hong Kong’s Hang Seng added 0.1 per cent 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 fall.

Yesterday, the Australian share market closed 0.8 per cent higher at 6123.

Company news

Michael Hill International (ASX:MHJ) today announced its full year financial results for the 52-week period ended 28 June 2020 showing statutory net profit after tax of $3.1 million (FY19: $16.5 million). Earnings before interest and tax (EBIT) of $14.1 million (FY19: $21.1 million). Group operating revenues of $492.1 million (FY19: $569.5m), largely attributable to Covid-19 store closures. No final dividend declared. Shares is Michael Hill International (ASX:MHJ) closed 4.76 per cent higher at $0.33 yesterday.

Companies reporting today include The a2 Milk Company (ASX:A2M), Bapcor (ASX:BAP), Boral (ASX:BLD), Corporate Travel Management (ASX:CTD), and Dexus (ASX:DXS).

Currencies

One Australian Dollar at 7:40 AM was buying 72.45 US cents, 54.72 Pence Sterling, 76.39 Yen and 60.73 Euro cents.

Commodities

Iron Ore gained 4.5 per cent to US$128.57.
Iron Ore futures suggest a 0.8 per cent gain.
Gold has gained $11.60 to US$2010 an ounce.
Silver was up $0.12 to US$27.95 an ounce.
Oil was down $0.34 to US$42.55 a barrel.

You can find details on our website about this month’s Investor Event on Tuesday, 25 August 2020