Strong start stunted by trade data: Aus shares 0.1% higher at noon
iSpeech.org
The Australian share market rose at the open following positive leads from Wall Street. All 3 major US indices ended the session over 7 per cent higher. The renewed positivity in the market springs from tentative signs that the coronavirus pandemic may be slowing in Europe and parts of the US. Boris Johnson remains in ICU in London as he fights his battle with COVID 19. Despite the strong start, the Australian market lost ground at 11:30 when the ABS announced that the February trade balance had fallen to around $4.4 billion. S&P/ASX 200 index: The S&P/ASX 200 index tracking 0.1 per cent or 8 points higher at 5,294. On the futures market the SPI is 46 points higher. Local economic news: We await the RBA’s board meeting and monetary policy decision which is expected at 2:30pm today. The Australian Bureau of Statistics has released figures on international trade in goods and services for February. In seasonally adjusted terms, the balance on goods and services was a surplus of $4,361 million in February 2020, that’s a decrease of $384 million compared to the surplus in January 2020. Data released today by the ABS shows that approximately 66 per cent of Australian businesses have reported that their turnover or cash flow has reduced as a result of COVID-19. Nearly half (47%) of Australia’s businesses made changes to their workforce arrangements as a result of COVID-19. Two in five businesses (38%) have changed how they deliver their products or services, over a third of businesses have renegotiated their lease and rental arrangements and a quarter have deferred loan repayments. Broker moves: Citi rates ASX (ASX:ASX) as a Sell but has lifted its 12 month price target to $71.70. Volumes on the ASX surged in March to a record level in cash terms. But the broker warns that this will not continue. The broker believes ASIC's cap on volumes and the RBA's intervention into the three-year bond market will soften overall volumes, as will an April easing of volatility. Shares ...
View at DailyMotion
Gloss