Morning Bell 30 April

Jessica Amir
April 30, 2020

The Australian share market looks like it will re-enter a bull market this morning following a stellar night on overseas and commodity markets, as the world is closer to a vaccine for COVID-19. The Aussie futures are eyeing a lift of 2% at the open, so if the ASX200 does see that rally, the local market would have collectively gained 21% from its March lows which means we’ll be back in bull territory, as a bull market is defined as a gain of 20%.

Global markets rallied for three important reasons:

  1. US biotech tech company, Gilead revealed its trial cured over 50% of the patients with severe COVID-19, with a five-day dose of it’s drug Remdesivir.
  2. COVID-19 cases are slowing in the U.S
  3. The US Federal Reserve pledge to keep rates as close to near zero to help the US economy.

Today, investors will be watching: ANZ (ASX:ANZ), Fortescue Metals Group (ASX:FMG), GPT Property Group (ASX:GPT), Mirvac (ASX:MGR), Qantas (ASX:QAN) and Woolworths (ASX:WOW).

This evening, all eyes will be on weekly jobless claims.

Read Transcript

Good morning, well it looks like the Australian share market could re-enter bull market territory this morning following a stellar night on overseas equities and commodities, as it seems the world could be closer to a COVID-19 vaccine.

However local traders and investors have a lot to digest with a lot of company quarterly reports and half your announcements including ANZ (ASX:ANZ) which just announced it’s half year profit tumbled over 50% lower and its deferred its half year dividend.

However the Aussie share market futures are suggesting a lift of 2% at the open, so if we do see that rise the ASX200 would have collectively gained 21% from its March lows which puts the market back into a bull market territory.

Now global markets puffed ahead for three very important reasons overnight, 1. Gilead the U.S biotech firm revealed its trial has cured 50% of patients with severe COVID-19. 2. COVID-19 cases are slowing in the U.S. 3. The U.S Federal Reserve has pledged to keep interest rates there closer to, or close, or near to zero to help the U.S economy.

Now in terms of what all of this meant for shares, well Gilead shares charged up 6% and as we announced an expected yesterday Google-parent Alphabet shares rallied ahead, they ended about 9% higher with their revenue beating expectations.

Most sectors in fact charged ahead leaving staples and utilities behind with investors really flicking on that risk on switch, even in the face of a steep drop in economic growth as U.S GDP saw its biggest fall since the GFC, falling 4.8% in the first quarter.

However the three indices saw still again the Nasdaq up the most 3.6%, S&P500 up 2.7% in the Dow up 2.2%. Euro markets also higher all about 2% higher each.

Also fueling the rally importantly a bounce back in the oil price which rose 22% to back above the $15 mark, while the safe-haven gold lost $7 compared to yesterday it’s now at $1,713 dollars an ounce.

Now in terms of what to go through today, as we announced ANZ (ASX:ANZ) half-year profit, their half-year profits statutory profit, 51% now it’s now at $1.5 billion, this is a pretty good result you’d think but it was much weaker than anticipated, largely weighed down by COVID-19 impacts the bank also announced they’re deferring their dividend to preserve capital until there’s a greater clarity about the economic impact of COVID-19.

Now in good news Fortescue metals (ASX:FMG),  Australia’s largest iron ore producer reported record third quarter iron ore shipments which rose 10% compared to the same time last year.

It also announced strong free cash flows which is what the market wants to hear taking cash on hand to $4.2 billion so plenty of surplus cash, you’d think it would seem to continue to pay dividends and in good news it also dropped its quarterly costs by 3%.

Elsewhere property companies are reporting GPT Property Group (ASX:GPT) and Mervac (ASX:MGR) and Qantas (ASX:QAN) the flying kangaroo their update will be out with their major shareholders, hopefully we’ll be keeping an eye out if their shareholders will be either giving the Lifeline, or giving Qantas a lifeline or taking it over so we’ll see what happens there and Woolworths (ASX:WOW) also reports quarterly sales.

Elsewhere what to watch, on the economic front I’d be watching borrowing data out for March as private-sector credit data is out year-on-year borrowing in February grew 2.8%, so you would expect growth to be significantly less in March particularly given NAB (ASX:NAB) is expecting to run a yearly loss and not make any money from borrowing costs, so closely to keep an eye on that.

And in terms of what to watch this evening, weekly jobless data is out for last week in the U.S and so we’re expecting a large alarming rise in unemployment, but it seems traders and investors are paying a lot less attention to economic data and more on individual company results and importantly finding a vaccine.

I’m Jessica Amir with Bell Direct happy trading and stay safe.

Close Transcript

Morning Bell 24 September

Jessica Amir
September 24, 2020

Morning Bell 23 September

Jessica Amir
September 23, 2020

Morning Bell 22 September

Jessica Amir
September 22, 2020

Morning Bell 21 September

Jessica Amir
September 21, 2020

Weekly Wrap 18 September

Jessica Amir
September 18, 2020

Morning Bell 18 September

Bell Direct
September 18, 2020

Morning Bell 17th September

Jessica Amir
September 17, 2020

Morning Bell 16th September

Jessica Amir
September 16, 2020

How to: Open a trading account

Bell Direct
September 15, 2020

Morning Bell 15 September

Jessica Amir
September 15, 2020