Australia poised for recession: ASX set to open higher

04Jun

Australia poised for recession: ASX set to open higher

 

Following a broad rally from US markets overnight, the Australian share market looks set to open higher this morning. If the GDP cpntnues to fall in the next quarter Australia will enter its first technical recession in 29 years. A recession is when we see two consecutive quarters of GDP contraction, which are now certain to occur due to the impact of coronavirus-related shutdowns in June quarter. Global stocks extended their rally into an eighth straight day due to optimism for a quick economic recovery from the pandemic. European stocks jumped the most in two weeks. The Australian dollar continues to rise against the USD.

Local economic news

International Trade in Goods and Services for April 2020 and also figures for retail sales for April.

Markets

Wall Street closed higher yesterday: The Dow Jones Industrial Average closed 2.1 per cent higher at 26,270, the S&P 500 added 1.4 per cent to 3123 and the NASDAQ gained 0.8 per cent to 9683.

European markets higher, London’s FTSE gained 2.6 per cent, Paris added 3.4 per cent and Frankfurt closed 3.9 per cent higher.

Asian markets closed higher, Tokyo’s Nikkei gained 1.3 per cent, Hong Kong’s Hang Seng added 1.4 per cent, and China’s Shanghai Composite closed 0.07 per cent higher.

Taking all of this into equation, the SPI futures are pointing to a 1.2 per cent gain.

Yesterday, the Australian share market closed 1.83 per cent higher at 5942.

Company news 

AFT Pharmaceuticals (ASX:AFP) has signed an exclusive distribution agreement with Austria’s Ever Valinject for the commercialisation of Maxigesic IV®, the intravenous form of its patented analgesic, in a significant portion of Western Europe: Germany, Austria, Italy and France. It also announces steady market share gains and sales growth across a broad range of its Australasian over-the-counter medicines as consumers seek protection against Covid-19 infection. Shares AFT Pharmaceuticals (ASX.AFP) last traded at $4.60 on the 2nd of June.

Currencies

One Australian Dollar at 7:40 AM was buying 69.21 US cents, 55.06 Pence Sterling, 75.38 Yen and 61.61 Euro cents.

Commodities

Iron Ore lost 0.1 per cent to US$101.22.
Iron Ore futures suggest a 0.1 per cent fall.
Gold has lost $30.90 to US$1703 an ounce.
Silver has fallen $0.30 to US$17.95 an ounce.
Oil was down $0.06 to US$36.75 a barrel.

Copyright 2020 – Finance News Network


Source: Finance News Network

Share this post

Related Posts

15Jan

Shares in Pro Medicus (ASX:PME) soar on new US deal: ASX tracking 0.4% higher at noon

14 Jan 2021 - The ASX opened higher this morning following positive leads from US markets. The ASX 200 Index is 27 points up or 0.4% higher at 6714. On the futures market, the SPI is suggesting a rise of 29 points.

Read More
23Mar

Market tense on Covid anniversary: ASX poised to open lower

23 Mar 2021 - Following mixed leads from US markets, the ASX looks set to open lower. Today marks the one year anniversary since the pandemic share crash in the US. The S&P 500 fell 2.9%. Pushpay Holdings (ASX:PPH) welcomes a new cornerstone investor.

Read More
21Sep

Tech sell off continues on Wall Street: Local markets set for weak start

21 Sep 2020 - The local sharemarket is set for a weak start this morning following negative overseas leads on the back of rising concerns about the pace of the global economic recovery from COVID-19.

Read More
23Mar

Freedom Foods hammered by investors: Aus shares close 0.7% higher

22 Mar 2021 - Rises in all sectors besides materials levitated the ASX200 in the green zone after midday, as Aus shares maintained momentum throughout the afternoon to close 0.7 per cent higher or 44 points up at 6753. This put an end to three consecutive sessions in the red for the ASX200. The on-going severe rainfall and floods have put Australia in an insurance catastrophe, as shares in QBE Insurance (ASX:QBE), Suncorp (ASX:SUN) and IAG (ASX:IAG) all closed...

Read More
05May

Investors await RBA statement: ASX to open higher

05 May 2020 - Following a buying spree from US markets, the ASX looks set to open higher this morning. Crude oil gained for a fourth consecutive day. Stocks were lower during much of yesterday’s session after tensions escalated between the Trump administration and China, but energy, information technology and utilities gained with a late session rally. Centuria Capital (ASX:CNI) has agreed to acquire an initial 19% interest in Augusta Capital, New Zealand’s leading listed real estate funds manager.

Read More
13May

Dr Fauci warns of ‘real risk’ if businesses open too soon: ASX poised to open lower

13 May 2020 - Following weak leads from US markets, the ASX looks set to open lower this morning. Wall Street saw stocks fall sharply yesterday after some recent strong gains. Investors are re-evaluating the latest attempts to open the economy. In America, Dr Anthony Fauci warned United States Congress there is a 'real risk' of outbreak if states reopen too soon. Spark New Zealand (ASX:SPK) welcomed the announcement of the direct allocation process of 5G spectrum.

Read More
30Nov

Chinese tariffs threaten to drown Australian wine exports: Aus shares up 0.9% over week

27 Nov 2020 - After opening modestly lower, the ASX200 lost ground throughout the day to close 0.5 per cent lower. All of the sectors ended in the red, except Real Estate Investment Trusts. Australia’s wine industry was dealt a blow today. The Chinese Government announced new tariffs-like deposits of up to 200 per cent on all Australian wine imports from tomorrow. Treasury Wine Estates (ASX:TWE) requested a trading halt this afternoon after its shares plunged on the back...

Read More
09Jul

Home loans record largest ever fall – ABS: Aus shares close 0.6% higher

09 Jul 2020 - The Australian share market rose at the open and continued to rally closing 0.6 per cent up at the end of today’s trade. Home loan commitments for housing fell sharply in May, down 11.6 per cent.

Read More
30Dec

Healthcare leads the day: Aus shares close 0.3% lower

30 Dec 2019 - After opening lower and losing ground over the first 2 hours of trade, the ASX200 index made a valiant attempt at a comeback in the second half of the session. It left its run a little late, missing the mark and closing 1.3 per cent lower.

Read More
16Aug

US equities rise despite weakening Chinese economic data

16 Aug 2022 - US equities rose on Monday as the rally on Wall Street continued as traders prepared for a big week for retail earnings.The move came despite disappointing economic data out of China, where the country’s central bank cut rates unexpectedly, raising concern over China’s economic recovery.

Read More