The Australian share market closed flat after taking a dip into negative territory mid-session. Energy stocks led the day climbing 0.7 per cent. At the closing bell the S&P/ASX 200 index closed 0.2 points higher to finish at 6,102. Over the week, the market has gained 311 points or 5.1 per cent. Every sector made gains this week, with Energy climbing over 9 per cent, Financials and Tech stocks each gaining over 7 per cent over the week.
Dow futures are suggesting a rise of 135 points.
S&P 500 futures are eyeing a rise of 16 points.
The Nasdaq futures are eyeing a lift of 47 points.
And the ASX200 futures are eyeing a steady start on Monday morning.
The Reserve Bank of Australia released the Financial Stability Review today which it distributes twice per year. It found that overall household income, and savings have increased thanks to the large fiscal stimulus payments. It also warned that business failures are set to rise substantially when loan repayment deferrals and income support come to an end and that this will have flow-on effects for their creditors and their employees. It highlighted the significant risks faced by lenders and investors who hold commercial real estate, as Covid continues to cause structural changes which are driving vacancy rates higher and valuations lower.
The Australian Bureau of Statistics has released data on lending indicators for the month of August. In August, new loan commitments in seasonally adjusted terms rose 12.6 per cent month on month. The number of owner occupier first home buyer entering the market has increased. With loan commitments for first home buyers up 37.3 per cent compared to the same period last year.
Advice now, pay later company QuickFee (ASX:QFE) has provided a trading update for the quarter ended 30 September 2020. It achieved its fourth consecutive quarter of record lending in the United States, up 91 per cent from the previous quarter to US$4.1 million. Back home in Australia however quarterly lending reduced 41 per cent to $6.4 million because the government stimulus packages have propped up small to medium businesses reducing their need for financing of professional services invoices. The company expects this trend to reverse as JobKeeper is phased out. It also appointed Simon Yeandle as Chief Financial Officer effective from today. Simon is a Chartered Accountant with over 25 years’ experience in software as a service, fintech, media and fast-growth, high-volume global organisations. He has previously serves as Chief Financial Officer for oOh!media (ASX:OML) and 3P Learning (ASX:3PL). Shares in QuickFee (ASX:QFE) closed 2.8 per cent lower at $0.53.
Newcrest Mining (ASX:NCM) is set to spend $236 million on its Cadia gold and copper mine project and its Lihir project in Papua New Guinea.
Oil and gas exploration company Strike Energy (ASX:STX) has finalised terms with Macquarie Bank for a $28 million, two year, secured debt facility.
CIMIC Group (ASX:CIM) has released its results for the nine months to 30 September 2020. Net profit after tax came in at $474 million.
Wrapped up our four trading days this week higher: The Dow Jones added 2.6 per cent, The S&P 500 added 2.9 per cent and the tech heavy Nasdaq gained 3 per cent.