US and Europe stocks sink on Covid resurgence: Aus shares to open lower

The ASX is set to drift lower at the open, following weak sessions in international markets as we see a resurgence in Covid-19 cases across Europe and the United States. Traders continue to await news of a potential US fiscal stimulus package as ongoing negotiations continue to weigh on the market. European Central Bank President Christine Lagarde says the bank stands ready to deploy the many weapons it has available, ranging from interest rates to forward guidance and asset purchase programs.


Wall Street closed lower yesterday: The Dow Jones Industrial Average lost 0.1 per cent to 28,494, the S&P 500 fell 0.2 per cent to 3483 and the NASDAQ closed 0.5 per cent lower at 11,714.

European markets closed lower, London’s FTSE lost 1.7 per cent, Paris fell 2.1 per cent and Frankfurt closed 2.5 per cent lower.

In Asian markets, Tokyo’s Nikkei fell 0.5 per cent, Hong Kong’s Hang Seng dropped 2.1 per cent and China’s Shanghai Composite closed 0.3 per cent lower.

Taking all of this into equation, the SPI futures are pointing to 0.2 per cent fall. Yesterday, the Australian share market closed 0.5 per cent higher at 6210.

Company news

Digital transformation company, Cosol (ASX:COS) has completed its acquisition of AddOns Inc. AddOns Inc is a managed IT services organisation based in Denver, Colorado. The acquisition is expected to be accretive to earnings and contribute positively to its 2021 results. The company says the combination of the two businesses provides a global platform for managed services, big data analytics, strategic advisory consulting, and technology solutions, particularly in the enterprise asset management space. Shares in Cosol (ASX:COS) closed 0.73 per cent lower at $0.68 yesterday.

Western Areas (ASX:WSA) has appointed Yasmin Broughton as an Independent, Non-Executive Director with effect from yesterday. She is a barrister who previously worked at top tier commercial law firms Clayton Utz and Ashurst specialising in mergers and acquisitions, corporate finance and corporate governance. Ms Broughton is also a non-executive director of Resolute Mining, Synergy, and the Insurance Commission of Western Australia. Shares in Western Areas (ASX:WSA) closed 0.44 per cent higher at $2.26 yesterday.

Ex dividend

Thorn Group (ASX:TGA) is going ex-dividend today, paying 7.5 cents fully franked.


One Australian Dollar at 7:20 AM was buying 70.93 US cents, 55.01 Pence Sterling, 74.78 Yen and 60.61 Euro cents.


Iron Ore has lost 0.7 per cent to US$118.70.
Iron Ore futures suggest 0.4 per cent fall.
Gold has gained $3.70 to US$1911 an ounce.
Silver was down $0.01 to US$24.39 an ounce.
Oil was down $0.03 to US$41.01 a barrel.