US shares snap 3-day streak of losses: Aus shares to open higher

The Australian sharemarket is set to rise at the open, in the wake of strong claw-backs on Wall Street amidst optimistic global sentiment. All US benchmarks closed in positive territory and snapped Wall Street’s three-day run of losses, as encouraging unemployment data enticed stateside investors to re-enter the hunt for bargain-buying opportunities. The weekly number of first-time claims for unemployment benefits in the US declined to a post-pandemic low of 444,000, which is lower than the expectations of Dow analysts. Gains by computing giants Microsoft and Apple fueled the broader rally on the Dow Jones index, as blue chips recouped losses from previous sessions. The upbeat sentiment flowed through to Europe and stimulated investor appetite for stocks on the pan-European Stoxx 600, as the index edged 1.2 per cent higher. Another boost for investor confidence around the world is deescalating tensions in Gaza, as the Israeli Security Cabinet has sanctioned a unilateral ceasefire to end eleven days of military aggression and Hamas has agreed to cooperate. 

Economic News

On Friday, the flash IHS Purchasing Managing Index surveys are due, covering the state of the world’s economy.

To the figures from around the globe: Wall Street closed higher yesterday: The Dow Jones Industrial Average added 0.6 per cent to 34,084. The S&P 500 gained 1.1 per cent to close at 4159. The Nasdaq closed 1.8 per cent higher to 13,536.

European markets closed higher, London’s FTSE gained 1 per cent, Paris added 1.3 per cent and Frankfurt closed 1.7 per cent higher.

Asian markets closed mixed, Tokyo’s Nikkei added 0.2 per cent, Hong Kong’s Hang Seng fell 0.5 per cent and China’s Shanghai Composite closed 0.1 per cent lower.

Taking all of this into equation, the SPI futures are pointing to a 0.4 per cent gain.

Yesterday, the Australian share market closed 1.3 per cent higher at 7020.

Company news

Sydney Airport has reported the highest levels of domestic traffic through its gates since the pandemic struck the aviation sector last March, as the travel hub edged further on its path to recovery. April saw a thirteen-month high of 1.49 million for the number of passengers boarding flights through Sydney Airport’s domestic terminal. The return of flight routes between major cities in Australia caused the drastic hike from last year’s 93,000 passengers, as pandemic conditions receded and control measures eased inside the country. International movement through Sydney Airport has steadily risen to 53,000, following the trans-Tasman travel treaty. Shares in Sydney Airport (ASX:SYD) closed 3.04 per cent higher at $5.77

Turning to currencies

One Australian Dollar at 7:35 AM was buying 77.74 US cents, 54.79 Pence Sterling, 84.55 Yen and 63.57 Euro cents.

To Commodities 

Iron Ore has dropped 2 per cent to US$211.85.
Iron Ore futures are pointing to 0.3 per cent fall.
Gold has added $0.40 to US$1882 an ounce.
Silver has gained $0.04 to US$28.07 an ounce.
Oil was down $1.31 to US$62.05 a barrel.