The Australian share market and S&P/ASX 200 (INDEXASX: XJO) is expected to open slightly lower on Tuesday according to the Sydney Futures Exchange.
Global markets mixed
Global markets were mixed around the world on Monday however the tech-heavy NASDAQ index continued its charge, up 0.8%; the S&P 500 rose 0.1%.
European markets were weaker with the German Dax and FTSE both improving slightly, but the most strength was in Asia where the Nikkei rallied 1.1% and the ASX 200, 1.3%. The ASX rally was broad-based with every sector increasing for the day on the back of easing lockdowns around the world.
Oil on the up?
Oil improved to $30 per barrel sending shares in Santos Ltd (ASX: STO) and Woodside Petroleum Ltd (ASX: WPL) up around 2%. Global hearing implant leader, Cochlear Limited (ASX: COH), added significantly to the market, rising 5% as elective surgeries around the world began to open up.
China borrowing… again
Amid continued discussions with the US, the Chinese central bank announced it would continue to support the domestic economy with a view to maintaining employment and seeking to remove poverty in 2020. A lofty goal. Reports indicated that the economy is once again relying on off-balance-sheet borrowing by domestic companies, called Local Government Finance Vehicles (LGFV) with issuance up to $206 billion for April.
UK PM Boris Johnson reduced restrictions whilst announcing a potential 14-day quarantine for all arrivals, impacting airlines including EasyJet.
Aussie stocks rebounding
It was a busy day for Australian companies, Macquarie Group Ltd (ASX: MQG) rallied 6% as management announced it was relaunching its $400 million raising via a long-dated preference share, suggesting market conditions were quickly improving.
US Cinema owner AMC Holdings was rumoured to have received a takeover offer from Amazon, sending the shares up 38%, whilst cable companies including Comcast and Charter are benefitting similarly to Telstra Corp Ltd (ASX: TLS) as consumers seek to install faster broadband connections.
Retailers in Australia also saw signs of improvement, shares of Kathmandu Holdings (ASX: KMD) rose 14% and car sales aggregator AP Eagers Ltd (ASX: APE) jumped over 10%.
This update was written by Drew Meredith, Financial Adviser and Director of Wattle Partners.
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