Chinese markets in Lunar New Year mode: ASX to open higher

The Australian sharemarket is slated to open higher, in light of strong gains in the US. Wall Street wrapped up its trading week in record-breaking territory, as all three benchmark indices closed on record highs. This came on the back of President Joe Biden’s assurance that 300 million Americans will have sufficient COVID vaccine supplies by July, after his administration secured another 200 million doses. The news inspired optimism about a stable economic recovery and further COVID stimulus.

The UK released official data indicating that the country’s economy declined by 9.9 per cent - the biggest slump since 1709’s Great Frost

Meanwhile, many of Asia’s major stock exchanges entered the Lunar New Year break, as the East rang in the year of the Golden Ox.

Local economic news

Tuesday is expected to be a busy day with data being released about Weekly consumer sentiment and Weekly payroll jobs & wages. Then on Wednesday, the ABS will reveal statistics about overseas arrivals and departures for December. The labour force survey results are set to be released on Thursday. Finally, we will wrap up the week with Preliminary retail trade figures and the ‘Flash’ Markit purchasing managers’ index.


To the figures from around the globe: Wall Street closed higher on Friday: The Dow Jones Industrial Average gained 0.1 per cent to close at 31,458, the S&P 500 added 0.5 per cent to 3935 and the NASDAQ closed 0.5 per cent higher at 14,095.

European markets closed higher: London’s FTSE gained 0.9 per cent, Paris added 0.6 per cent and Frankfurt closed 0.1 per cent higher.

In Asian markets, Nikkei lost 0.1 per cent, while Hong Kong’s Hang Seng and China’s Shanghai Composite were closed.

Taking all of this into equation, the SPI futures are pointing 0.6 per cent gain.

On Friday, the Australian share market lost 43 points to close at 6807.

Company News

Gold exploration and development company Ora Banda Mining (ASX:OBM) has secured a credit-approved offer of $15 million from banking giant Commonwealth (ASX:CBA). Of the total funding, $5 million will be put towards the purchase of put options, while the rest will be spent on development expenditure and general working capital. Experts have tipped this achievement to boost the developer-turned gold producer’s prudent risk and capital management capability during ramp up to full production at the Davyhurst Gold Project Shares in Ora Banda Mining (ASX:OBM) closed 3.45 per cent lower at $0.28 on Friday


Qv Equities Limited (ASX:QVE) is paying 1.1 cents fully franked
Suncorp Group Ltd (ASX:SUN) is paying 26 cents fully franked


One Australian Dollar at 7:30 AM was buying 77.72 US cents, 56.02 Pence Sterling, 81.76 Yen and 64.05 Euro cents.


Gold has lost $3.60 to US$1823 an ounce.
Silver has added $0.28 US$27.33 an ounce.
Oil has gained $1.23 to US$59.47 a barrel.

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