All eyes prepped for the Budget tomorrow: ASX poised to open higher

The Australian share market looks set to open higher this morning despite weakness on Wall Street. US President Donald Trump’s doctors say he will probably be released from hospital today. He was flown to hospital on Friday after he and wife Melania were diagnosed with Coronavirus. Still in the US, the unemployment rate fell to 7.9 per cent in September. On Friday the iron ore price remained unchanged on limited trades with Chinese market participants away for the Golden Week holidays.


Wall Street closed lower on Friday: The Dow Jones Industrial Average closed 0.5 per cent lower at 27,683, the S&P 500 lost almost 1 per cent to 3,348 and the NASDAQ fell 2.2 per cent to 11,075.

European markets closed mixed: London’s FTSE gained 0.4 per cent, Paris gained 0.02 per cent and Frankfurt was down 0.3 per cent.

Asian markets closed mixed: Tokyo’s Nikkei lost 0.7 per cent, Hong Kong’s Hang Seng gained 0.8 per cent and China’s Shanghai Composite lost 0.2 per cent.

Taking all of this into equation, the SPI futures are pointing to 67 point rise.

On Friday, the Australian share market closed 1.4 per cent lower or 81 points lower at 5,792.

Local Economic News

Today the Melbourne Institute will release inflation figures for September. Tomorrow the Treasurer Josh Frydenberg will hand down the 2020-21 Federal Budget. The Budget will provide a further update on the economic and fiscal impacts of the coronavirus in this country and is expected to set out the path to economic recovery. Also tomorrow, the ABS will release figures for International Trade in Goods and Services. On Wednesday the ABS will release Weekly Payroll Jobs and Wages. On Thursday Building Approvals for small geographic areas. And on Friday Lending Indicators for housing, personal and business loans.

Company news

Fonterra (ASX:FSF) has agreed to sell its China farms for a total of $555 million after successfully developing the farms alongside local partners. Inner Mongolia Natural Dairy Co., Ltd, a subsidiary of China Youran Dairy Group Limited (Youran), has agreed to purchase Fonterra’s two farming-hubs in Ying and Yutian for $513 million. Separately, Fonterra has agreed to sell its 85 per cent interest in its Hangu farm to Beijing Sanyuan Venture Capital Co., for $42 million. Sanyuan has a 15 per cent minority shareholding in the farm and exercised their right of first refusal to purchase Fonterra’s interest. Shares in Fonterra (ASX:FSF) closed 2.1 per cent lower at $3.72.


Naos Emerging Opportunities Company (ASX:NCC) is paying 3.5 cents fully franked
Nick Scali (ASX:NCK) paying 22.5 cents fully franked.
Viva Energy Group (ASX:VVA) paying 5.94 cents unfranked.


One Australian Dollar at 7:30 AM was buying 71.66US cents, 55.50 Pence Sterling, 75.52 Yen and 61.25 Euro cents.


Iron Ore futures are up 4.99 per cent.
Gold has lost $8.70 to US$1908 an ounce.
Silver has lost $0.22 to US$24.03 an ounce.
Oil has lost $1.67 to US$37.05 a barrel.