Australian Market Slightly Higher

Australian stock market is slightly higher on Friday, after being in the red most of the morning, with the benchmark S&P/ASX 200 staying above the 7,500 level, following the broadly positive cues overnight from Wall Street, as the country struggles to contain the domestic coronavirus situation, primarily in New South Wales, hindering economic activity amid lockdowns.

RBA Governor Philip Lowe said it is “quite unlikely” Australia will suffer a recession this year because of the coronavirus pandemic. However, it should grow through the final three months of the year, he added.

The benchmark S&P/ASX 200 Index is gaining 5.60 points or 0.08 percent to 7,516.70, after hitting a low of 7,497.30 and a high of 7,513.50 earlier. The broader All Ordinaries Index is up 5.50 points or 0.07 percent to 7,785.10. Australian markets ended slightly higher on Thursday.

Among major miners, BHP Group is losing more than 2 percent, while Mineral Resources and OZ Minerals are declining almost 1 percent each. Rio Tinto and Fortescue Metals are down almost 2 percent each.

BHP announced it has approved a US$544 million for the Shenzi North oil project in the US Gulf of Mexico with production expected to begin in the 2024 financial year.

Oil stocks are higher. Oil Search and Santos are edging up 0.5 percent each, while Woodside Petroleum is edging up 0.2 percent and Beach energy is up more than 1 percent. Origin Energy is edging down 0.2 percent.

Among tech stocks, Xero is gaining more than 1 percent, while WiseTech Global and Appen are flat. Afterpay is adding more than 5 percent.

Among the big four banks, National Australia Bank, ANZ Banking and Westpac are edging up 0.2 percent each, while Commonwealth Bank is flat.

Banks have frozen repayments on 14,500 home loans as a result of the latest round of lockdowns, highlighting the growing financial toll being inflicted by restrictions, primarily in NSW.

Gold miners are lower. Newcrest Mining and Gold Road Resources are losing more than 2 percent each, while Resolute Mining is down more than 3 percent and Evolution Mining is lower by more than 1 percent. Northern Star Resources is declining almost 3 percent.

In other news, shares in Rupert Murdoch’s News Corp are up more than 5 percent after it declared its most profitable financial result in eight years.

Online bookie BetMakers announced that New Jersey Thoroughbred has officially authorised fixed odds wagering on horse racing. BetMakers’ has a 10-year agreement with New Jersey which operates the Monmouth Park Racetrack to offer fixed odds wagering. BetMakers is surging almost 10 percent.

In the currency market, the Aussie dollar is trading at $0.739 on Friday.

On Wall Street, stocks moved back to the upside during trading on Thursday after ending the previous session mostly lower. With the upward move on the day, the Nasdaq and the S&P 500 reached new record closing highs.

The major averages saw further upside going into the close, ending the session at their best levels of the day. The Dow climbed 271.58 points or 0.8 percent to 35,064.25, the Nasdaq advanced 114.58 points or 0.8 percent to 14,895.12 and the S&P 500 rose 26.44 points or 0.6 percent to 4,429.10.

Meanwhile, the major European markets also finished the day mixed. While the U.K.’s FTSE 100 Index edged down 0.1 percent, the German DAX Index rose 0.3 percent and the French CAC 40 Index climbed 0.5 percent.

Crude oil futures rebounded Thursday, regaining ground after moving sharply lower over the three previous sessions. After plummeting by 7.8 percent so far this week, crude for September delivery advanced $0.94 or 1.4 percent to $69.09 a barrel.

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