‘Phase 1’ deal between US and China brings optimism: ASX to open higher

14Oct

‘Phase 1’ deal between US and China brings optimism: ASX to open higher

 

Following positive leads from US markets, the Australian share market looks set to open higher this morning. A partial trade deal was secured between China and the US bringing optimism to the markets. The US have agreed to suspend a tariff increase on at least $250 billion in Chinese goods to 30 per cent from 25 per cent. The official Chinese response to the “phase one” trade deal was wary but welcoming. Over in Britain, London-listed equities exposed to the domestic economy performed strongly on Friday after British Prime Minister Boris Johnson and his Irish counterpart said they had found “a pathway” to a possible Brexit deal. On the commodities front, oil has added and gold has dropped over $12.00.

Markets

Wall Street closed higher on Friday: The Dow Jones Industrial Average added 1.2 per cent to close at 26,817, the S&P 500 gained 1.1 per cent to close at 2970 and the NASDAQ advanced 1.3 per cent to 8057.

European markets closed higher on Friday: London’s FTSE added 0.8 per cent, Paris gained 1.7 per cent and Frankfurt jumped 2.9 per cent higher.

Asian markets closed higher on Friday: Tokyo’s Nikkei added 1.2 per cent, Hong Kong’s Hang Seng gained 2.3 per cent and China’s Shanghai Composite improved 0.9 per cent.

Taking all of this into equation, the SPI futures are pointing to 0.5 per cent gain. On Friday, the Australian share market closed 60 points (0.9 per cent) higher at 6607

Local economic news 

Australian Bureau of Statistics will release their annual report tomorrow for 2018-19.

And on Thursday they’ll release the Labour Force figures for September

Company news 

Neuren Pharmaceuticals (ASX:NEU) announced that the US Food and Drug Administration (FDA) has granted Orphan Drug Designation to Neuren’s NNZ-2591 for the treatment of Angelman syndrome. Neuren previously announced positive results for the drug in separate mouse models of each of Phelan-McDermid syndrome, Angelman syndrome and Pitt Hopkins syndrome, three debilitating childhood disorders for which currently there are no approved drug therapies. Each disorder is caused by a mutation or deletion in a different gene; however they share an underlying impairment in the connections and signaling between brain cells, which is the target for treatment with NNZ-2591. Shares in Neuren Pharmaceuticals (ASX:NEU) closed 8.9 per cent higher to $2.33 on Friday.

Ex-Dividends

Brambles Limited (ASX:BXB) is paying 17 cents unfranked
PPK Group Limited (ASX:PPK) is paying 1 cent fully franked
TPG Telecom Limited (ASX:TPM) is paying 2 cents fully franked
Turners Automotive (ASX:TRA) is paying 3.6991 cents 85 per cent franked
United Overseas Australia (ASX:UOS) is paying 0.5 cents unfranked

Currencies

One Australian Dollar at 7:45 AM was buying 67.90 US cents, 53.86 Pence Sterling, 73.55 Yen and 61.52 Euro cents.

Commodities

Iron Ore has added 0.1 per cent to US$93.76.
Iron Ore futures suggest a 0.2 per cent gain.
Gold has dropped $12.20 to US$1489 an ounce.
Silver was down 6 cents to US$17.54 an ounce.
Oil has added $1.22 to US$54.78 a barrel.
 
Copyright 2019 – Finance News Network


Source: Finance News Network

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