Interest rate cuts expected today: ASX poised to open higher

Market Reports

by Rachael Jones

The Australian share market looks set to open higher this morning on the hope of a cut in interest rates. Wall Street rebounded from the worst week since March. Crude oil rose the most in more than three weeks. President Donald Trump and Democrat presidential hopeful Joe Biden have embarked on their final day of campaigning. Biden will be focusing his efforts on Pennsylvania and Ohio while Trump has five rallies across North Carolina, Michigan and Wisconsin. Over in the UK, the country recently passed 1 million confirmed Covid cases, according to data from Johns Hopkins University. Prime Minister Boris Johnson announced a one month lockdown from this weekend.

Economic News

The Reserve Bank Board are meeting later today where its expected policymakers will lower the cash rate to 0.1 per cent from 0.25 per cent. It’s also expected the Board will announce a quantity based asset purchase (QE) program buying a mix of Commonwealth Government and state government bonds.


Wall Street closed higher yesterday: The Dow Jones Industrial Average gained 1.6 per cent to close at 26,925, the S&P 500 added 1.2 per cent to 3310 and the NASDAQ closed 0.4 per cent higher to 10,958.

European markets closed higher: London’s FTSE added 1.4 per cent, Paris gained 2.1 per cent and Frankfurt closed over 2 per cent higher.

Asian markets closed higher: Hong Kong’s Hang Seng gained 1.4 per cent and China’s Shanghai Composite added 1.5 per cent while Tokyo’s Nikkei was 0.02 per cent higher.

Taking all of this into equation, the SPI futures are pointing to a 0.1 per cent gain.

Yesterday, the Australian share market closed 0.4 per cent higher at 5951.

Company news

Sandfire Resources (ASX:SFR) has become aware of reports that China may be considering a ban on imports of copper ore and concentrate from Australia. Sandfire is not aware of the reasons for the reported potential ban or the reliability of the media reports. They say should it be required, Sandfire is confident in its ability to increase sales contract volumes to existing and also new copper concentrate customers in non-Chinese markets (for example, into existing markets in Japan, Korea, the Philippines and Europe) based on its market soundings and engagement during its regular tender processes. Shares in Sandfire Resources (ASX:SFR) closed 0.5 per cent higher at $4.44 yesterday.


Bisalloy Steel Group (ASX:BIS) is paying 5 cents fully franked
Jupiter Mines (ASX:JMS) is paying 1 cent unfranked


One Australian Dollar at 8:20 AM was buying 70.56 US cents, 54.62 Pence Sterling, 73.91 Yen and 60.63 Euro cents.


Iron Ore has added 0.5 per cent to $118.06.
Iron Ore futures suggest a 0.6 per cent loss.
Gold has gained $16.20 to US$1896 an ounce.
Silver has added $0.51 to US$24.16 an ounce.
Oil was up $1.15 to US$36.94 a barrel.

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