Global coronavirus cases surge rattling markets: ASX poised to open lower

The Australian share market looks set to fall this morning as global coronavirus cases surge. France, Russia and the United States all set new daily records for cases with new restrictions being brought in. Oil producers are set to stop offshore production in the US Gulf of Mexico as the 27th named storm of the season strengthened and looked likely to threaten the United States as a hurricane. Meanwhile, China's crude oil imports from the US rose to a record high in September, spurred by cheap prices and a trade deal between Beijing and Washington. Iron ore futures hit a four-week low yesterday, stay tuned for today’s price coming up later.

Economic News

Today Reserve Bank Assistant Governor Michele Bullock will give a speech.


Wall Street closed lower yesterday: The Dow Jones Industrial Average lost 2.3 per cent to 27,685, the S&P 500 lost 1.9 per cent to 3401 and the NASDAQ closed 1.6 per cent lower at 11,359.

European markets closed also lower, London’s FTSE lost 1.2 per cent, Paris fell 1.9 per cent and Frankfurt closed 3.7 per cent lower.

Asian markets closed lower, Tokyo’s Nikkei lost 0.1 per cent, Hong Kong’s Hang Seng was closed and China’s Shanghai Composite closed 0.8 per cent lower.

Taking all of this into equation, the SPI futures are pointing to 0.9 per cent fall.

Yesterday, the Australian share market closed 0.2 per cent lower at 6156.

Company news

Synlait (ASX:SM1) remains a solid and highly profitable business despite Covid-19 and a fall in NPAT of 9 per cent to $75.2 million. The drop in NPAT reflects investments in new facilities and acquisitions over the past two years to create new opportunities for growth. EBITDA grew 13 per cent to $171.4 million demonstrating the strength of our infant and lactoferrin businesses. Shares in Synlait Milk (ASX:SM1) closed 2.77 per cent lower at $4.91 yesterday.


Clover Corporation (ASX:CLV) is paying 2.5 cents fully franked


One Australian Dollar at 7:45 AM was buying 71.26 US cents, 54.72 Pence Sterling, 74.69 Yen and 60.34 Euro cents.


Iron Ore has lost 0.8 per cent to US$114.63.
Iron Ore futures suggest 0.4 per cent gain.
Gold has lost $0.60 to US$1905 an ounce.
Silver was down $0.26 to US$24.42 an ounce.
Oil was down $1.30 to US$38.55 a barrel.