Oil jumps 19%: ASX poised to open higher
Following positive leads from US markets, Wall Street rallied up on the back of further US stimulus optimism, the Australian share market looks set to open higher this morning.
Still in the US, Oil jumped 19 per cent – hitting a high of 40% on Wednesday, recovering from early losses in a volatile overnight trading session that saw international benchmark Brent crude fall to its lowest level in more than 20 years.
Markets
Wall Street closed higher yesterday:
The Dow Jones Industrial Average gained 1.99 per cent to close 23,476 the S&P 500 added 2.3 per cent to 2799 and the NASDAQ closed 2.8 per cent higher at 8495.
European markets closed higher:
London’s FTSE added 2.3 per cent, Paris gained 1.3 per cent and Frankfurt closed 1.6 per cent higher.
Asian markets closed mixed:
Tokyo’s Nikkei fell 0.7 per cent, Hong Kong’s Hang Seng gained 0.4 per cent and China’s Shanghai Composite added 0.6 per cent.
Taking all of this into equation, the SPI futures are pointing to a 0.9 per cent gain.
Yesterday, the Australian share market closed flat at 5221.
Local economic news
Purchasing manager indexes (PMIs) for April are released by the CBA and IHS-Markit.
ABS provides updates on regional labour markets and preliminary international trade for March.
Company news
Lynas Corporation (ASX:LYC) has advised that the U.S. Department of Defense (DoD) intends to award a Phase I contract for a U.S. based Heavy Rare Earth separation facility to Lynas, following the company’s tender submission to the DoD in December 2019. Phase I funding provided by the DoD will allow Lynas and Blue Line to complete detailed planning and design work for the construction of a U.S. based Heavy Rare Earth separation facility, in line with DoD Phase I milestones. Successful completion of Phase I milestones may lead to further contracts for commercial scale production and operation of a U.S. Heavy Rare Earth separation facility. Shares in Lynas Corp (ASX:TWR) closed 4.5 per cent lower at $1.40 yesterday.
Turning to currencies
One Australian Dollar at 7:45 AM was buying 63.19 US cents, 51.24 Pence Sterling, 68.13 Yen and 58.39 Euro cents.
Commodities
Iron Ore has gained 0.8 per cent to $85.04
Iron Ore futures suggest a 1.2 per cent gain.
Gold has added $50.50 to US$1738 an ounce.
Silver has gained $0.51 to US$15.50 an ounce.
Oil was up $2.21 to US$13.78 a barrel.
Copyright 2020 – Finance News Network
Source: Finance News Network
