Europe and the US struggle to contain Covid surge: ASX poised to open lower

Market Reports

by Rachael Jones

The Australian share market looks set to open lower this morning as European stocks slide. The European Union has warned there are not enough Covid vaccines for everyone in Europe until 2022. The US election next week is also causing uncertainty around the markets. US Vice President Joe Biden is currently ahead of President Donald Trump in national opinion polls.

Economic News

The ABS releases the September quarter Consumer Price Index and Provisional Mortality Statistics for the January-July period.


Wall Street closed mixed yesterday: The Dow Jones Industrial Average lost 0.8 per cent to 27,463, the S&P 500 fell 0.3 per cent to 3,391 and the NASDAQ closed 0.6 per cent higher at 11,431.

European markets closed lower, London’s FTSE lost 1.1 per cent, Paris fell 1.8 per cent and Frankfurt closed 0.9 per cent lower.

In Asian markets, Tokyo’s Nikkei lost 0.04 per cent, Hong Kong’s Hang Seng was 0.5 per cent lower and China’s Shanghai Composite closed 0.1 per cent higher.

Taking all of this into equation, the SPI futures are pointing to 0.5 per cent fall.

Yesterday, the Australian share market closed 1.7 per cent lower at 6051.

Company news

Gentrack Group (ASX:GTK) is pleased to announce the appointment of Andy Green CBE as Chair of its board of directors. Andy has an extensive background in technology leadership including CEO of Logica, a £4 billion turnover listed IT services Company, and CEO of BT Global Services, the enterprise arm of British Telecom. In 2020 Andy was awarded Commander of the British Empire (CBE) for his contributions to the Information Technology and British Space Industries. Gentrack also announces the retirement of Andy Coupe as a Non-executive Director of the Group, effective 2 November 2020. Shares in Gentrack Group (ASX:GTK) last traded 0.4 per cent lower at $1.16


One Australian Dollar at 7:20 AM was buying 71.35 US cents, 54.67 Pence Sterling, 74.55 Yen and 60.43 Euro cents.


Iron Ore futures suggest 0.1 per cent fall.
Gold has gained $4.20 to US$1910 an ounce.
Silver has added $0.09 to US$24.52 an ounce.
Oil is up $0.88 to US$39.44 a barrel.