RBA board to meet for the first time this year: ASX poised to open higher


The Australian share market is set to open higher this morning after recovering yesterday from an early tumble. Tech stocks did well in New York yesterday. Apple, Facebook and Netflix were each at least 1.5 per cent higher. Meanwhile, GameStop was 26 per cent lower in afternoon trading. Silver lifted to an 8-year high as retail shareholders bought the metal. And oil prices lifted on expectations of further falls in US crude inventories and rising winter demand.

Economic news outlook

Commonwealth Bank (CBA) Group economists will release weekly credit and debit card spending data. Other weekly data releases include the ANZ-Roy Morgan consumer sentiment gauge and the Bureau of Statistics (ABS) weekly payroll jobs and wages data. Also on Tuesday, the Reserve Bank (RBA) Board meets for the first time in 2021 with no change in policy settings expected.

Markets

Wall Street closed higher yesterday: The Dow Jones Industrial Average gained 0.8 per cent to 30,212, the S&P 500 added 1.6 per cent to 3774 and the NASDAQ closed 2.6 per cent higher at 13,403.

European markets closed higher, London’s FTSE added 0.9 per cent, Paris gained 1.2 per cent and Frankfurt closed 1.4 per cent higher.

Asian markets closed higher, Tokyo’s Nikkei added 1.6 per cent, Hong Kong’s Hang Seng gained 2.2 per cent and China’s Shanghai Composite closed 0.6 per cent higher.

Taking all of this into equation, the SPI futures are pointing to a 0.8 per cent gain.

Yesterday, the Australian share market closed 0.8 per cent higher at 6663.

Company news

David Bortolussi is set to take up his new roles as Managing Director and CEO of The a2 Milk Company next Monday. The share price is trading at nearly a 50 per cent discount to where they were six months ago. Shares in the a2 Milk Company (ASX:A2M) closed 0.84 per cent higher at $10.79 yesterday.

Ex-Dividends

Saracen Mineral (ASX:SAR) is paying 3.8 cents fully franked

Currencies

One Australian Dollar at 8:20 AM was buying 76.23 US cents, 55.79 Pence Sterling, 79.99 Yen and 63.21 Euro cents.

Commodities

Iron Ore has lost 0.9 per cent to US$157.07.
Iron Ore futures suggest 0.8 per cent fall.
Gold has gained $13.40 to US$1864 an ounce.
Silver was up $2.20 to US$29.12 an ounce.
Oil was up $1.49 to US$53.69 a barrel.