Economic activity fell 7% in June quarter: ASX tracking 1.6% higher

02Sep

Economic activity fell 7% in June quarter: ASX tracking 1.6% higher

 

The Australian share market is now tracking 1.6 per cent higher. Shares in IOOF Holdings (ASX:IFL) dropped. They announced this morning that they had completed the institutional component of their capital raising to partly held fund the acquisition of NAB’s MLC. All sectors are in the green.

The S&P/ASX 200 index

The S&P/ASX 200 index is 93 points up at 6,046. On the futures market the SPI is suggesting a rise of 100 points.

Local economic news

Australian Gross Domestic Product (GDP) fell 7 per cent in the June quarter, the largest quarterly fall on record, according to figures released by the Australian Bureau of Statistics (ABS) today. This follows a fall of 0.3 per cent in the March quarter 2020.

Broker moves

Citi rates Zip Co (ASX:Z1P) as a Downgrade to a Sell from a Neutral. Citi envisages potential for the share price to outperform in the near term. Still, the stock is up 35 per cent over the last month and the entry of PayPal into the BNPL segment increases concerns regarding growth expectations for the medium term. While the core Australian business is differentiated, Citi remains concerned that Zip is a late entry in the US, given Afterpay (ASX:APT), Klarna and Affirm's sizeable lead. Shares in Zip co (ASX:Z1P) trading 10.1 per cent lower at $7.17.

Company news

Western Areas (ASX:WSA) is pleased to announce the maiden Ore Reserve for its AM6 deposit, located at the Cosmos Nickel Operation boosts Odysseus base case. A 26 per cent increase in AM6 Mineral Resource Estimate of 2.8Mt. The AM6 deposit is directly accessible from the existing AM5 decline infrastructure and provides an additional feed source to the Cosmos mill. The pre-production capital estimate for AM6 is $30 million and total sustaining life of mine capital of $81 million. Shares in Western Areas (ASX:WSA) are 5.5 per cent higher at $2.30.

Best and worst performers

The best-performing sector is materials rising 2.3 per cent, while the worst performing sector is energy gaining the least at 0.5 per cent.

The best performing stock in the S&P/ASX 200 is Bluescope Steel (ASX:BSL) rising 6.8 per cent to $13.29, followed by shares in AMP (ASX:AMP) and United Malt Group (ASX:UMG).

The worst performing stock in the S&P/ASX 200 is IOOF Holdings (ASX:IFL) dropping 13.9 per cent to $3.67, followed by shares in Flightcentre Travel Group (ASX:FLT) and Beach Energy (ASX:BPT).

Commodities and the dollar

Gold is trading at US$1,964 an ounce.
Iron ore price is 0.2 per cent higher at US$124.66.
Iron ore futures are suggesting a rise of 0.4 per cent.
One Australian dollar is buying 73.50US cents.
 
Copyright 2020 – Finance News Network


Source: Finance News Network

Share this post

Related Posts

23Dec

Imports of goods up 11% in November: ASX tracking 0.5% higher at noon

23 Dec 2020 - The ASX opened higher this morning with the S&P/ASX 200 Index 35 points up or 0.5% higher at 6,635. Shares in the Smart Group Corp (ASX:SIQ) are on the up today after reporting their operating EBITDA is expected to be approximately $47 million for the second half. Shares in Ramelius Resources (ASX:RMS) are currently dropping. Materials is the only sector to make losses so far this morning.

Read More
10Mar

Iron ore sees a dip: ASX closed 0.8% higher

10 Mar 2021 - The Australian share market took a dip in mid morning trade and failed to gain momentum. At the closing bell the S&P/ASX 200 index closed 57 points lower, or 0.8 per cent lower to finish at 6,714. Cann Group (ASX:CAN) has completed the acquisition of the Satipharm business from Harvest One Cannabis Inc.

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
27Jul

Tasmania tops economic rankings: Aus shares 0.3% higher at noon

27 Jul 2020 - The Australian share market opened slightly lower this morning following mostly negative leads from international markets and rising geopolitical tensions between China and the US. Despite the drop at the open, the market rebounded in early trade. About half of the sectors are in the green this morning, Materials leading the way. Commsec has released its quarterly State of the States report. For the first time in over a decade Tasmania is number one in...

Read More
31Mar

Virgin Australia (ASX:VAH) enters trading halt: Aus shares 2.8% higher at noon

31 Mar 2020 - The Australian share market opened higher again this morning and is now trading 2.8 per cent higher. Virgin Australia (ASX:VAH) has gone into a trading halt as it seeks financial support from the Federal Government.

Read More
08Sep

Nasdaq drops as weekly jobless claims disappoint

08 Sep 2023 - The Nasdaq Composite fell for a fourth session Thursday as concerns resurfaced over the Federal Reserve’s interest rate policy path, as the latest jobless claims data has come in.

Read More
15Aug

US stocks climb as inflation cools

15 Aug 2024 - The Dow Jones Industrial Average gained ground on Wednesday, buoyed by encouraging US inflation data.

Read More
18Aug

US stocks slide as investors assess jobs data and new earnings

18 Aug 2023 - Stocks slid for a third session on Thursday as investors digested the latest round of earnings and economic data.

Read More
11Sep

BHP to cut carbon emissions by 30% by FY2030: Aus shares to open lower

11 Sep 2020 - The pre-election political gridlock in the United States continues, as a new Republican stimulus package worth $US300 billion fails to advance through the Senate. Wall Street unwound early gains and ended in the red on broad-brushed profit taking. Mining giant BHP (ASX:BHP) has announced a target to reduce operational greenhouse gas emissions by at least 30 per cent by FY2030.

Read More
13May

Red-hot inflation rise pressures Wall St to plunge: ASX to fall

13 May 2021 - The ASX is set to drop falling Wall St closing deep in the red as the annual inflation rate rose to its highest in 13 years. Citi rates Suncorp (ASX:SUN) as neutral while Morgan Stanley rates Virgin Money UK (ASX:VUK) as hold. The SPI futures are pointing to a 0.4% fall.

Read More