World markets rocked by Iran-US tensions: ASX poised to open lower

06Jan

World markets rocked by Iran-US tensions: ASX poised to open lower

 

Following weak leads from US markets, the Australian share market looks set to open lower this morning. Over in the US stocks fell on fears of escalation of military activity in the Middle East
after the Commander of Iran's Islamic Revolutionary Guards Corps was killed in Baghdad by rockets from an American strike. Iran has vowed “severe retaliation.” The S&P 500 Index posted its biggest loss in a month On the commodities front, oil has risen and safety net gold has climbed following the Middle East flare-up.

Local economic news

Today the AiG will release performance of manufacturing for December.

Tuesday

The Australian Bureau of Statistics will release Job vacancy figures for November as well as building approvals for the month.

Wednesday 

International Trade in Goods and Services, for November from the ABS

Thursday 

Retail Trade, November 2019.

Markets

Wall Street closed lower yesterday: The Dow Jones Industrial Average lost 0.8 per cent to close at 28,635, the S&P 500 lost 0.7 per cent to close at 3,235 and the NASDAQ lost 0.8 per cent to close at 9,021.

European markets closed mixed: London’s FTSE closed 0.2 per cent higher, Paris added 0.04 per cent and Frankfurt lost 1.3 per cent.

Asian markets closed lower: Tokyo’s Nikkei lost 0.8 per cent, Hong Kong’s Hang Seng fell 0.3 per cent, and China’s Shanghai Composite lost 0.1 per cent.

Taking all of this into equation, the ASX futures are pointing to a 4 point fall. On Friday the Australian share market closed higher with the S&P/ASX 200 Index closing 43 points higher at 6,734.

Company news 

Resolute Mining (ASX:RSG) has taken advantage of market volatility and current gold price strength to extend the Company’s US dollar denominated gold hedge position. The Company has forward sold an additional 22,800 ounces of gold at an average price of US$1,553 per ounce in scheduled monthly deliveries of 3,800 ounces between July 2020 and December 2020. This hedging secures price certainty during 2020 for a portion of the US dollar revenues generated from Resolute’s African gold mines: the Syama Gold Mine in Mali and the Mako Gold Mine in Senegal. Shares in Resolute Mining (ASX:RSG) closed 3.6 per cent higher on Friday at $1.28.

Currencies

One Australian Dollar at 7:30AM was buying 69.38 US cents, 53.08 Pence Sterling, 74.91 Yen and 62.16 Euro cents.

Commodities

Iron Ore futures suggest a 0.7 per cent rise
Gold has gained $24.30 to US$1,552 an ounce.
Silver has gained $0.11 to US$18.15 an ounce.
Oil has risen by $1.87 to US$63.05 a barrel.
 
Copyright 2020 – Finance News Network


Source: Finance News Network

Share this post

Related Posts

13Aug

Wall St gains, Inflation rises as producer price heats up while jobless claims fall, Why CBA is a sell: ASX to open higher

13 Aug 2021 - A mixed closed across the globe as inflation, economic and company earnings take the spotlight as investors weigh on Covid-19 concerns versus the economic recovery. Coverage on the jobless claims report with the July jobs and job openings report along with the producer price index figures after the consumer price data yesterday. Why Commonwealth Bank (ASX:CBA) is a sell. No major economic news today.

Read More
04May

Lynas Corporation (ASX:LYC) restarts plant: Aus shares 0.3% higher at noon

04 May 2020 - The Australian share market opened lower this morning following continued US-China tensions and is now trading 0.3 per cent higher at noon. Lynas Corporation (ASX:LYC) has restarted its Lynas Malaysia plant.

Read More
26Apr

US tech giants due to report earnings this week: ASX to edge higher

26 Apr 2021 - The ASX is to edge higher this morning. Wall St closed mostly lower over the week despite its bounce back on Friday. Macquarie downgrades Evolution Mining (ASX:EVN) as a natural. Five IPOs are set to make their debut this week.

Read More
23Aug

S&P500 falls as Treasury yields rise

23 Aug 2023 - The S&P 500 fell Tuesday, weighed by concerns over rising Treasury yields ahead of a key speech later this week from Federal Reserve Chairman Jerome Powell, as well as declines in banking and retail shares.

Read More
13Mar

Dow suffers worst drop since Black Monday: ASX poised to plunge at the open

13 Mar 2020 - The ASX looks set to drop at the open. The Dow Jones Industrial Average plunged yesterday suffering its worst drop since the 1987 “Black Monday” market crash, when it collapsed by more than 22%. Trading was stopped for 15 minutes shortly after the open in New York. But the pause failed to keep the index from closing in a bear market. The Decmil Group (ASX:DCG) believes it is entitled to all amounts claimed for its...

Read More
19Dec

Wall St slips, FedEx shares drop on profit forecast: Aus shares to open lower

19 Dec 2019 - The Australian sharemarket is set to open lower after stocks slipped on Wall Street. In the US stocks pared gains late in trading and Wall Street fell short of extending its winning streak to six days.

Read More
26Aug

US markets rally: Extreme weather events threatening Chinese & European economies

26 Aug 2022 - Behind the stronger US markets overnight, climate change is dominating global economies with, extreme heat and severe drought continuing to disrupt energy and water supplies.

Read More
13Apr

Wall St falls on inflation spike, Oil jumps 7%, EML, AdBri, Lynas, Sims on watch: ASX to open lower

13 Apr 2022 - Wall St's rally was short lived after March inflation data came in line with estimates. Asia was mixed as Premier Li encouraged Chinese companies to buy back stock amid an easing of Covid-19 restrictions in Shanghai. Putin says peace talks is a ‘dead end’. Oil prices jump to US$100 a barrel.

Read More
04Mar

Emergency rate cut from the Fed: ASX set to open lower

04 Mar 2020 - Following negative leads from US markets, the ASX looks set to open lower this morning. In the US the Federal Reserve, in a surprise move, cut its benchmark interest rate by 50 basis points to help with the economic stress caused by the coronavirus. Wall Street initially rallied but then experienced a drop. Westgold Resources (ASX:WGX) reports that underground sub-level cave stoping has recommenced at the Big Bell underground mine.

Read More
25Nov

Construction work falls 2.6% in Sept quarter: ASX tracking 0.8% higher at noon

25 Nov 2020 - The ASX rose at the open and is now tracking 0.8% higher at noon. Shares in Whitehaven Coal (ASX:WHC) are doing well today meanwhile shares in Mesoblast (ASX:MSB) have dropped over 5% after a rally earlier this week. Harvey Norman (ASX:HVN) has reported a 160.1% increase in profit before tax between July 1 and October 31.

Read More