Aussie shares have recovered from a slow start, with the ASX 200 lifting by 0.1 per cent to 6063.8, thanks most to gains from financials, technology and consumer discretionaries. This extends the market’s winning streak to five consecutive days, with stocks remaining near the best levels in three weeks. This follows last week’s 2.6 per cent lift, which was its strongest week since early June, with the ASX 200 remaining above 6,000pts for a third day.
This is set to be a quiet one internationally for both economic data and scheduled company events (e.g. profit results). The spread of COVID-19 will be a risk, with over 50,000 confirmed cases per day in the US recently and the NSW-VIC border set to close from tomorrow night. The RBA Board meeting on Tuesday will also receive plenty of attention. The cash rate is likely to remain on hold at 0.25 per cent. A more positive statement from Governor Philip Lowe could be supportive for the Australian dollar, which has pushed lower on the further lift in US COVID-19 cases.
The US market was shut on Friday for the Independence Day holiday. European markets lost some ground.
Some travel stocks are a touch lower at lunch following this morning’s news the NSW-VIC border will shut from midnight tomorrow due to an uncomfortable lift in COVID-19 community transmission. Qantas (QAN) and Sydney Airport (SYD) are down by ~0.5 per cent. QAN was down by more than 2 per cent a little earlier in the session.
Both Qantas (QAN) and Afterpay (APT) are teaming up, which means users of the buy-now-pay-later company will be able to earn frequent flyer points starting later this week. Shares in APT are up 0.7 per cent after briefly cracking an all-time high of $70 per share last week. APT is trading almost nine times its March low of $8.01.
Mayne Pharma (MYX) is up 6.7 per cent after entering a long-term supply agreement with China based Novast Laboratories for 13 US generic oral contraceptive products, including five new products not previously marketed by the Company.
Transurban (TCL) announced the opening of the M8 (formerly known as the New M5) and commenced tolling on the M5 East yesterday.
City Chic (CCX) has responded to recent media speculation regarding a potential acquisition in the US. CCX said ‘there has been no agreement on the terms of any possible acquisition, nor is there any certainty that such agreement will be reached’. The clothing retailer is up 4.5 per cent regardless.
2.8bn shares have changed hands so far today, worth a relatively light $2.1bn. 687 stocks are up, 433 down and 320 are unchanged.
Published by CommSec