The local market is expected to start the week lower as earnings season comes to a close. The reporting season has been the worst since the last recession in terms of earnings, the focus on earnings has also led to underperformance in the ASX which is lagging behind Wall Street, with the S&P500 and the Nasdaq both hitting record highs on Friday
Walmart and Coca-Cola led the gains for the Dow, rising 2.7 per cent and 3.3 per cent, respectively. Tech and energy were the best-performing sectors in the S&P 500, gaining 1.1 per cent and 1.9 per cent, respectively.
Investor sentiment was supported by reports that President Trump was willing to sign the $1.3 billion coronavirus relief bill.
Global oil prices fell on Friday. Hurricane Laura passed through oil installations in Louisiana and Texas without causing widespread damage. But expectations for global oil demand remain bearish. Our energy sector could come under pressure today as a result. The materials sector could fare better after base metal prices rose on Friday. And the Aussie dollar is at its highest level since late 2018 which could also weigh on the market.
To the figures from around the globe: Wall Street closed higher on Friday: The Dow Jones Industrial Average gained 0.6 per cent to close at 28,654, the S&P 500 gained 0.7 per cent to close at 3508 and the NASDAQ closed 0.6 per cent higher at 11,696.
European markets closed lower: London’s FTSE lost 0.6 per cent, Paris dropped 0.3 per cent and Frankfurt closed 0.5 per cent lower.
Asian markets closed mixed, Nikkei lost 1.4 per cent, Hong Kong’s Hang Seng gained 0.6 per cent and China’s Shanghai Composite added 1.6 per cent.
Taking all of this into equation, the SPI futures are pointing to a 0.7 per cent fall.
On Friday, the Australian share market fell 9 points to close at 6074.
All eyes will be on IOOF today following media reports in the Australian that the company is set to launch a $1 billion raising to acquire NAB’s wealth business. The company will also hand down it’s full year results today. Shares in IOOF Holdings (ASX:IFL) were placed on the trading halt on Thursday and last traded at $4.63.
One Australian Dollar at 7:40 AM was buying 73.63 US cents, 55.16 Pence Sterling, 77.63 Yen and 61.83 Euro cents.
Iron Ore has gained 1.8 per cent to US$124.37.
Iron Ore futures suggest a 1.6 per cent gain.
Gold has added $42.30 to US$1975 an ounce.
Silver was up $0.59 cents to US$27.79 an ounce.
Oil has lost $0.07 to US$42.97 a barrel.