Economic recovery quicker and stronger than expected - Lowe: ASX tracking 0.1% higher at noon

Market Reports

by Rachael Jones

The Australian share market opened slightly lower this morning and is now tracking 0.1 per cent higher at noon. The S&P/ASX 200 index is 7 points up at 6,774. On the futures market the SPI is 6 points lower.

Local economic news

Reserve Bank governor Philip Lowe says the economic recovery has been quicker and stronger than expected. The remarks were made at the Melbourne Business Analytics Conference.

Broker moves

Macquarie rates Qantas (ASX:QAN) as an Upgrade to an Outperform from a Neutral. The broker expects the vaccine rollouts in Qantas’ key international destinations to be largely completed by the end of 2021. Supported by border policies, government stimulus and the vaccine, the broker expects domestic capacity to overshoot pre-covid levels in the near term. Target price is $6.35. Shares in Qantas (ASX:QAN) are trading 1.4 per cent at $5.38.

Company news

Fortescue Metals Group Ltd (ASX:FMG) plans to achieve carbon neutrality by 2030, ten years earlier than the previous target. Fortescue Future Industries (FFI), a wholly owned subsidiary of Fortescue, will be a key enabler of this target through the development of green electricity, green hydrogen and green ammonia projects in Australia. Shares in Fortescue Metals Group Ltd (ASX:FMG) are trading 4 per cent lower at $20.41.

Best and worst performers

The best-performing sector is Real Estate Investment Trust, adding 1.2 per cent, while the worst performing sector is Information Technology, shedding 1.5 per cent.

The best performing stock in the S&P/ASX 200 is Fisher & Paykel Healthcare (ASX:FPH), rising 4.4 per cent to $28.19, followed by shares in Collins Foods (ASX:CKF) and Clinuvel Pharmaceuticals (ASX:CUV).

The worst performing stock in the S&P/ASX 200 is GWA Group (ASX:GWA), dropping 5.8 per cent to $2.83, followed by shares in AP Eagers (ASX:APE) and Fortescue Metals Group (ASX:FMG).

Commodities and the dollar

Gold is trading at US$1,733 an ounce.
Iron ore price fell 3.1 per cent to US$165.44
Iron ore futures are pointing to a fall of 4.3 per cent.
One Australian dollar is buying 77.70 US cents.

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