S&P/ASX 200 Index down 10.7% across the year: ASX poised to open lower

01Jul

S&P/ASX 200 Index down 10.7% across the year: ASX poised to open lower

 

The Australian share market looks set to start the new financial year by opening lower. For the year to date, the S&P/ASX 200 Index is still down 10.7 per cent, that’s its worst 12 months since the global financial crisis. In the US, Federal Reserve chairman Jerome Powell reiterated overnight that the future of the economy is “highly uncertain”. The Dow Jones Industrial Average meanwhile just wrapped up its best quarter since 1987. Many countries are relaxing lockdown restrictions despite the pandemic in an effort to stimulate their economies, but the World Health Organization has warned “the worst is yet to come” and is asking countries not to speed through the reopening process.

Local economic news due out today

ABS, Building approvals for May. CoreLogic, Dwelling prices for June.

Markets

Wall Street closed higher yesterday: The Dow Jones Industrial Average gained 0.9 per cent to 25,813, the S&P 500 added 1.5 per cent to 3100 and the NASDAQ closed 1.9 per cent higher at 10,059.

European markets closed mixed, London’s FTSE fell 0.9 per cent, Paris lost 0.2 per cent and Frankfurt closed 0.6 per cent higher.

Asian markets closed higher, Tokyo’s Nikkei added 1.3 per cent, Hong Kong’s Hang Seng gained 0.5 per cent and China’s Shanghai Composite closed 0.8 per cent higher.

Taking all of this into equation, the SPI futures are pointing to a 0.1 per cent fall.

Yesterday, the Australian share market closed 1.4 per cent higher at 5898 yesterday.

Company news

AMP (ASX:AMP) has today completed the sale of its life insurance business, AMP Life, to Resolution Life for $3 billion.The total sale proceeds are $2.5 billion cash $500 million equity interest in Resolution Life Australia , a new Australian-domiciled, Resolution Life-controlled holding company that is now the owner of AMP Life. AMP expects the net proceeds to increase AMP’s capital in excess of target surplus by approximately $1.1 billion. Shares in AMP (ASX:AMP) closed 1.6 per cent higher at $1.86 yesterday.

Currencies

One Australian Dollar at 7:45 AM was buying 69.05 US cents, 55.68 Pence Sterling, 74.53 Yen and 61.47 Euro cents.

Commodities

Iron Ore lost 0.4 per cent to US$99.43.
Iron Ore futures suggest a 0.5 per cent gain.
Gold has gained $19.30 to US$1801 an ounce.
Silver was up 57 cents to US$18.64 an ounce.
Oil has lost $0.43 to US$39.27 a barrel.
 
Copyright 2020 – Finance News Network


Source: Finance News Network

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