Local shares tipped to slip: Virus concerns persistCraig Foley
The local sharemarket looks set to start the new week lower following weak leads from European markets. Wall Street was closed for the Independence day holiday on Friday but finished a shortened week strongly on Thursday with stocks rising after than a better-than-expected jobs report. Thursday’s gains led to strong weekly performances for the major averages. The Dow rose 3.3 per cent last week and the S&P 500 climbed 4 per cent. Both the Dow and S&P 500 notched their biggest weekly gains since June 5.
The markets positive run comes despite the number of Covid-19 cases in the states continuing to rise with the World Health Organisation reporting that the number of coronavirus cases has reached a new high over the weekend. With Florida and Texas both hitting a record number of new daily cases on Saturday. Despite increasing infection numbers the Governor of Florida will not close businesses again.
To the figures from around the globe: Wall Street was closed on Friday.
European markets closed lower. London’s FTSE dropped 1.3 per cent, Paris lost 0.8 per cent while Frankfurt closed 0.6 per cent lower.
Asian markets closed higher, Nikkei added 0.7 per cent, Hong Kong’s Hang Seng gained almost 1 per cent and China’s Shanghai Composite closed 2 per cent higher.
Taking all of this into equation, the SPI futures are pointing to 0.6 per cent fall.
On Friday, the Australian share market added 25 points (0.4 per cent) to close at 6058.
The local bourse closed marginally higher on Friday extending its winning streak to four days and rounding out a 2.6 per cent gain for the week. A booming tech sector helped push the ASX to a three week high. Afterpay jumped over 18 per cent for the week after brokers Citi and RBC Capital Markets both increased their price targets on the stock. Nearmap and NextDC also made double digit weekly gains. The major banks also pushed higher over the course of the week with CBA and Westpac both rising over 3 per cent. Miners were the major lag on the market last week as the price of iron slipped as supply increased in Australia and Brazil Gains came despite increasing COVID cases in Victoria and many states in the US The Aussie dollar also pushed higher hitting 69.36US cents. Australian retail sales saw a record surge in May as lockdown restrictions loosened across the country. The rise follows a historic plunge in April. The strong bounce indicates consumer spending may not be as weak as feared inn the June quarter.
Local economic news
Today we can look out for the June readings on the inflation gauge from Melbourne Institute and job advertisements from ANZ.
On Tuesday the Reserve Bank will meet for its monthly policy meeting but no change in interest rates is expected. AiGroup’s services activity data is due as well as the weekly consumer confidence figures and CBA’s weekly data on credit and debit spending. Rounding out the week on Thursday, the ABS releases the May Lending Indicators publication.
Fisher & Paykel Healthcare (ASX:FPH) is paying 14.5 cents unfranked
One Australian Dollar at 7:40 AM was buying 69.35 US cents, 55.64 Pence Sterling, 74.60 Yen and 61.68 Euro cents.
Iron Ore added 1.2 per cent to US$100.65.
Iron Ore futures suggest a 0.4 per cent gain.
Gold has lost $2.70 to US$1787 an ounce.
Silver was down $0.01 cents to US$18.31 an ounce.
Oil has lost $0.33 to US$40.32 a barrel.
Copyright 2020 – Finance News Network
Source: Finance News Network