Democrats on track to win balance of power in Senate: Aus shares set to open higher

07Jan

Democrats on track to win balance of power in Senate: Aus shares set to open higher

 

The ASX futures are pointing to a jump at the open following news that the Democrats are projected to win one seat in Georgia, and are narrowly holding the other as the votes are counted. These seats will determine the balance of power in the Senate. If the Democrats secure both seats, President Elect Biden will have stronger prospects of passing legislation. This would likely mean a larger fiscal stimulus package for the nation, greater regulation for the tech sector and increased infrastructure spending. In anticipation of a Democrat win in Georgia, the Dow and the S&P 500 made record gains last night as investors snapped up financial and industrial stocks. Tech stocks went the other way, with Netflix, Apple, Amazon and Facebook losing over 2 per cent during the session. Meanwhile, President Trump supporters have stormed the Capitol building and forced it into lockdown to prevent the count of the Electoral College votes which would affirm Joe Biden’s victory.

Local economic news

We are expecting the Australian Bureau of Statistics to release building approval data for November and figures on International Trade in Goods and Services for November.

Markets

Wall Street closed mixed yesterday: The Dow Jones Industrial Average gained 1.4 per cent to 30829, the S&P 500 added almost 0.6 per cent to 3748 and the NASDAQ closed 0.6 per cent lower at 12741.

European markets closed higher, London’s FTSE gained 3.5 per cent, Paris added 1.2 per cent and Frankfurt closed 1.8 per cent higher.

Asian markets closed mixed, Tokyo’s Nikkei lost 0.4 per cent, Hong Kong’s Hang Seng added 0.2 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 1.5 per cent gain.

Yesterday, the Australian share market closed 1.1 per cent lower at 6607.

Company news

Investment and superannuation platform operator, HUB24 (ASX:HUB) has released its bidder’s statement in relation to its attempt to snap up shares in Easton Investments. The off–market takeover bid is for 1 out of every 3 shares in the wealth management company, and offers $1.20 cash per share. The directors of Easton Investments unanimously intend to recommend that shareholders accept the offer, provided a superior proposal isn’t thrown into the mix. The bidder’s statement was silent on when the offer period would begin and end. Shares in Hub24 (ASX:HUB) closed 1.2 per cent lower at $22.04.

Currencies

One Australian Dollar at 7:30 AM was buying 77.99 US cents, 57.28 Pence Sterling, 80.34 Yen and 63.25 Euro cents.

Commodities

Gold has lost $29.80 to US$1925 an ounce.
Silver was down $0.30 to US$27.34 an ounce.
Oil was down $0.47 to US$48.22 a barrel.
Iron Ore futures suggest a 0.29 per cent rise.
 
Copyright 2021 – Finance News Network


Source: Finance News Network

Share this post

Related Posts

16Dec

PolyNovo (ASX:PNV) supplies burn cream to volcano victims: ASX closed 1.6% higher

16 Dec 2019 - It has been a huge day of trade for the ASX seeing its biggest one day gain since February. After rising at the open it continued to climb closing 1.6% higher. Nearmap (ASX:NEA) is now the biggest gainer. PolyNovo (ASX:PNV) has supplied NovoSorb BTM for dermal repair after the volcano eruption New Zealand.

Read More
22Nov

Wall St mixed, Oil drops on covid jitters, Citi Chic’s price target gets a boost: ASX to fall

22 Nov 2021 - Mixed market around the globe as Covid-19 jitters emerge. European markets fell while Alibaba dragged the Hang Seng while Japanese shares rallied on fresh stimulus. ASX closed higher on Friday though lower for the week. Macquarie boosted City Chic’s (ASX:CCX) target price.

Read More
15Oct

Dow surpasses 43,000 amid earnings anticipation

15 Oct 2024 - The S&P 500 and Dow Jones Industrial Average reached new records on Monday as investors looked ahead to the next round of key corporate earnings.

Read More
01Feb

First remuneration report strike for Freedom Foods (ASX:FNP): Aus shares down 2.9% over week

29 Jan 2021 - Aussie shares ended lower today, deepening yesterday’s sell off. Energy stocks were the hardest hit, dropping over 2 per cent as the iron price weakened. At the closing bell the S&P/ASX 200 index closed 42 points or 0.6 per cent lower to finish at 6,607. Over the week, the market has lost 2.9 per cent or 193 points. Freedom Foods Group (ASX:FNP) chalked up its first strike against the remuneration report at today’s AGM.

Read More
04Nov

Banks down on Westpac (ASX:WBC) report: ASX closes 0.3% higher

04 Nov 2019 - The ASX closed 0.3% higher. Banks didn’t fare so well though. Westpac (ASX:WBC) reported a 15% slump in full-year profit, a cut to its dividend and announced they want to raise $2.5 billion in capital. This news sent NAB’s (ASX:NAB) shares down. And Collins Foods (ASX:CKF) has been served with Federal Court proceedings by Taco Bill Mexican Restaurants.

Read More
10Feb

Ramelius (ASX:RMS) lobs bid to acquire Spectrum Metals (ASX:SPX) : Aus shares 0.5% lower at noon

10 Feb 2020 - The Australian share market opened slightly weaker this morning following negative leads from Wall Street. It has taken a hit over the morning and is trading 0.5 per cent lower at noon. Most of the sectors are in the red, with Energy weighing heaviest on the market.Ramelius Resources (ASX:RMS) is lobbing a bid to acquire Spectrum Metals (ASX:SPX).

Read More
02Feb

Dow Jones rebounds: Apple, Amazon and Meta report results after hours

02 Feb 2024 - The Dow Jones Industrial Average rose Thursday as stocks recover from a dismal day for the major averages after the Federal Reserve held steady on rates but signalled that a March cut is unlikely.

Read More
30Nov

Bega raises $284M: Aus shares 0.4% lower at noon

27 Nov 2020 - The Australian share market opened slightly lower and has made a modest decline in the first 2 hours of trade. Energy stocks are dragging on the market. Most of the sectors are trading in the red. Shares in Bega Cheese (ASX:BGA) have rallied this morning, after it successfully raised $284 million, via the institutional component of its 1 to 4.5 pro rata entitlement offer, and its underwritten institutional placement.

Read More
06Sep

Mixed economic data fuels market volatility

06 Sep 2024 - US stocks struggled overnight as investors grew increasingly concerned about the health of the economy, particularly ahead of Friday's crucial nonfarm payrolls report.

Read More
22Feb

US stocks get battered as rates continue to pressure market sentiment

22 Feb 2023 - US stocks dropped Tuesday as higher rates continue to pressure market sentiment, and the latest batch of retail earnings raised concern about the state of the consumer. It now appears that equity markets that finally caught up to what the Treasury markets have been saying for a couple of weeks.

Read More