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Australian market expected to open higher 10/02/20

Australian market expected to open higher 10/02/20, FP Markets

OPENING CALL: The Australian share market is expected to open higher. The SPI200 futures contract expected to open up 7 points.

Many U.S. companies expect the outbreak to dent their China revenue as the virus threw travel into turmoil and all but stopped many other consumer activities in the country, from shopping to eating in restaurants.

New SoftBank Tech Fund Falls Short of $108 Billion Fundraising Goal  – The technology giant will raise far less than anticipated for its next fund after investors, disillusioned by bad bets like WeWork and by the chaotic and unorthodox way the fund operates, have refused to put up new cash, people familiar with the matter said.

Overnight Summary

EACH MARKET IN FOCUS

Australian Market

The Australian stock market closed Friday 0.4% lower at 7022.6 as regional markets dropped on renewed coronavirus concerns. The benchmark S&P/ASX 200 ignored record closes on Wall Street and dropped steadily through the session, before recouping nearly half its
losses in a late rally.

Energy stocks were again the biggest drag, as uncertainty lingered over demand. Beach Energy dropped 4.0% and Caltex Australia fell 2.1% as the sector fell 1.7% on the day, and 4.6% for the week.

The miners were Friday’s next worst performer, falling 1.1%. Flight Centre fell 2.4% after warning it might miss full-year profit guidance because of coronavirus. Only property trusts and consumer staples showed gains.

US Market

Stocks dropped but held onto strong weekly gains as investors parsed the latest read on U.S. job growth.

The Dow Jones Industrial Average declined 277 points, or 0.9%, as of 4 p.m. Eastern time, after rising for a fourth consecutive day to close at a record Thursday.  The S&P 500 and Nasdaq Composite both lost 0.5%. All three indexes finished the week with gains of about 3% or more.

Investors analyzed the strength of the U.S. job market, a crucial indicator of the economy’s health, after the Labor Department said the U.S. economy added 225,000 jobs in January, beating expectations and putting the jobless rate at 3.6%. Wages increased 3.1%
from a year earlier.

Major U.S. stock indexes had recouped their steep losses from last week, rising in recent days to close at records Thursday. China slashing tariffs helped boost sentiment among traders and investors, while corporate earnings have continued to largely beat expectations.

Commodities

Gold futures shook off losses seen shortly after the release of better-than-expected U.S. employment data, to settle higher as renewed worries about the spread of the coronavirus and it’s impact on the global economy worked to pull U.S. benchmark stock indexes down from record levels.

Oil Futures

Oil prices fell for the fifth week in a row as investors tried to gauge the fallout from a coronavirus that has sickened thousands in China and tamped down demand in the world’s largest importer of oil.

West Texas Intermediate futures fell 1.2% to $50.32 a barrel on Friday, while Brent, the global gauge of prices, fell 0.8% to $54.47 a barrel.

Forex

The dollar weakened 0.2% against the yen but was broadly stronger against other major currencies after the U.S. jobs report beat expectations.  The euro weakened 0.3% against the dollar on data showing German industrial activity fell a surprise 3.5% in December.

European Markets

European stocks fell as lingering fears about the coronavirus outbreak in China offset upbeat U.S. job data. The Stoxx Europe 600 fell 0.4%, the FTSE 100 retreated 0.6%, the DAX declined 0.6% and the CAC-40 was down 0.4%.

Asian Markets

Hong Kong stocks edged lower, snapping a four-day winning streak amid profit-taking pressure. The Hang Seng Index was down 0.3% at 27404.27. Chinese oil majors and electronic-component suppliers were major drags on the index.

Japanese shares closed lower, with the Nikkei Stock Average down 0.2% at 23827.98 after Japan posted weaker-than-expected household spending data for December.

Shares of SoftBank Group rose 7.1% after The Wall Street Journal reported that activist investor Elliott Management has built up a stake of more than $2.5 billion in the Japanese company, and is pushing for changes that would bolster the stock price.

Indian shares fell, ending a three-day winning streak driven largely by a pro-growth government budget announced over the weekend. The benchmark Sensex closed 0.4% lower at 41141.85. Financial stocks were among the prominent decliners, reversing the previous session’s gains that came as India’s central bank left its key interest rate unchanged.

  • Australian market expected to open higher 10/02/20, FP Markets
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