Weak US jobs data counteracts stimulus hopes: Aus shares set to open lower

Market Reports

by Katrina Bullock

Australian shares are poised to edge lower at the open following negative leads from Wall Street. The Dow and the Nasdaq hit record highs during the sessions on optimism that President-elect Biden may propose a Covid stimulus package of up to $US2 trillion. US markets lost steam at the end of the session though and closed lower after weak labour data rolled in. Meanwhile, European shares advanced for a third straight session.

Local economic news

Today we are expecting the Australian Bureau of Statistics to release lending indicator data for the month of November.



International markets

Wall Street closed lower yesterday: The Dow Jones Industrial Average shed 0.2 per cent, the S&P 500 lost 0.4 per cent and the NASDAQ closed 0.1 per cent lower.

European markets closed higher, London’s FTSE gained 0.84 per cent, Paris added 0.3 per cent and Frankfurt closed 0.4 per cent higher.

Asian markets closed mixed, Tokyo’s Nikkei gained 0.9 per cent, Hong Kong’s Hang Seng added 0.9 per cent and China’s Shanghai Composite closed 0.9 per cent lower.

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

Yesterday, the Australian share market closed 0.4 per cent higher at 6715.

Company news 

Payment solution specialist Integrated Research (ASX:IRI) is in the early stages of preparing its interim financial statements for the six months ending 31 December 2020. In late December the company estimate that revenue for the period would be in the range of $34 to $37 million. It projected that profit after tax would be in the range of breakeven to $2 million. Based on internal management accounts and subject to audit review, it now projects that both its revenue and its profit after tax will be at the lower end of these ranges. Shares in Integrated Research (ASX:IRI) closed 2.8 per cent lower at $2.48.

Currencies

One Australian Dollar at 8:00 AM was buying 77.88 US cents, 56.90 Pence Sterling, 80.77 Yen and 64.05 Euro cents.

Commodities

Gold has lost $7.40 to US $1848 an ounce.
Silver was up $0.05 to US $25.63 an ounce.
Oil was up $0.34 to US $51.40 a barrel.
Iron Ore futures suggest 2.1 per cent rise.