Travel restrictions imposed on NSW after more Covid cases: ASX to open lower
The Australian share market looks set to open lower this morning as the new coronavirus outbreak has led to border restrictions with all states and territories closing their borders to New South Wales. European countries have closed their borders to the UK as a new, fast-spreading strain has been detected in the south of England leading to bans on flights to and from Britain. The US is also coping with a second wave. Iron ore is on the up and the Australian dollar is standing at almost 76 US cents.
Local economic news
Today we have the ANZ business confidence for December, On Tuesday, the 'Preliminary Retail Trade' report for November will be issued by the Australian Bureau of Statistics. Then on Wednesday, the November 'Preliminary International Trade' report also from the ABS.
Markets
Wall Street closed lower on Friday: The Dow Jones Industrial Average lost 0.4 per cent to close at 30,179, the S&P 500 fell 0.4 per cent to close at 3709 and the NASDAQ closed 0.1 per cent lower at 12,756.
European markets closed lower on Friday: London’s FTSE lost 0.3 per cent, Paris fell 0.4 per cent and Frankfurt closed 0.3 per cent lower.
Asian markets closed lower on Friday: Tokyo’s Nikkei lost 0.2 per cent, Hong Kong’s Hang Seng shed 0.7 per cent and China’s Shanghai Composite closed 0.3 per cent lower.
Back home, the SPI futures are pointing to 0.2 per cent fall. On Friday, the Australian share market closed 1.2 per cent lower at 6675.
Company news
Synlait Milk (ASX:SM1) has updated its full year 2021 guidance and now expects total consumer-packaged infant formula volumes to be about 35 per cent lower than in 2020. This is due to a revised demand forecast received from The a2 Milk Company (ASX:A2M) following its 1H21 and FY21 guidance update released. The a2 Milk Company is a strategic customer and cornerstone shareholder of Synlait. NPAT result will be approximately half that of the FY20 NPAT result. This updated guidance announcement reflects the impact that Covid-19 has had on Synlait’s strategic customer. Shares in Synlait Milk (ASX:SM1) closed 1.91 per cent lower at $4.61 on Friday.
Ex-Dividends
Eildon Capital Group (ASX:EDC) is paying 2 cents unfranked
Kelly Partners Group (ASX:KPG) is paying 1.33 cents fully franked
Currencies
One Australian Dollar at 7:40 AM was buying 75.92 US cents, 56.59 Pence Sterling, 78.57 Yen and 62.09 Euro cents.
Commodities
Iron Ore has gained 3.7 per cent to US$164.39
Iron Ore futures suggest a 2.2 per cent gain.
Gold was down $1.50 to US$1889 an ounce.
Silver has dropped $0.15 to US$26.03 an ounce.
Oil was up $0.74 to US$49.10 a barrel
Copyright 2020 – Finance News Network
Source: Finance News Network
