Tech stocks sink as Covid cases surge across Europe and the US: ASX poised to fall at the open

Market Reports

by Rachael Jones

The Australian share market looks set to drop at the open after a fall on Wall Street and across European markets. Coronavirus cases are set to trigger more lockdowns in Europe as they cope with the second wave. Tech stocks took a hit with shares in Apple, Amazon and Facebook all down. And Boeing Co. is set to slash another 7,000 jobs by the end of the year bringing the total losses to 30,000 people. Due to the prolonged grounding of the 737 Max jetliner they are cutting 19 per cent of their pre-pandemic workforce.

Economic News

International Trade Price Indexes for September and International Merchandise Trade: Confidential Commodities List from the Australian Bureau of Statistics.


Wall Street closed lower yesterday: The Dow Jones Industrial Average lost 3.4 per cent to 26,520, the S&P 500 fell 3.5 per cent to 3271 and the NASDAQ closed 3.73 per cent lower at 11,005.

European markets closed lower, London’s FTSE lost 2.6 per cent, Paris fell 3.4 per cent and Frankfurt closed 4.2 per cent lower.

In Asian markets, Tokyo’s Nikkei lost 0.3 per cent lower, Hong Kong’s Hang Seng dipped 0.3 per cent and China’s Shanghai Composite closed 0.5 per cent higher.

Taking all of this into equation, the SPI futures are pointing to 1.7 per cent fall.

Yesterday, the Australian share market closed 0.11 per cent higher at 6058

Company news

Pilbara Minerals (ASX:PLS) has entered into an Implementation Deed with the senior secured loan noteholders of Altura to potentially acquire the Altura Lithium Project. This would be through the purchase of the shares in Altura Lithium Operations Pty Ltd for approximately $248 million. ALO is a wholly-owned subsidiary of Altura Mining Limited and owns and operates the Altura Project. The Altura Project is a producing hard rock spodumene concentrate operation located on an adjoining tenement package immediately to the west of Pilbara Minerals’ Pilgangoora Lithium-Tantalum Project. Shares in Pilbara Minerals (ASX:PLS) last traded at 39 cents.


Gryphon Capital Income Trust (ASX:GCI) is paying 0.74 cents unfranked
Perpetual Credit Income Trust (ASX:PCI) is paying 0.31 cents unfranked
Qualitas (ASX:QRI) is paying 0.83 cents unfranked


One Australian Dollar at 7:20 AM was buying 70.44 US cents, 54.26 Pence Sterling, 73.52 Yen and 59.97 Euro cents.


Iron Ore futures suggest 0.3 per cent rise.
Gold has lost $34.40 to US$1878 an ounce.
Silver is down $1.16 to US$23.41 an ounce.
Oil has shed $2.26 to US$37.31 a barrel.