Good morning and welcome to the Morning Outlook. I’m Rachael Jones reporting live from Kalkine TV
Sydney studio. The Australian share market is expected to open marginally higher today.
According to the latest SPI futures, the ASX 200 is expected to open 0.1% higher this morning.
Yesterday, at the closing bell, the S&P/ASX 200 was 1.2 per cent or 82 points higher at 7,088.
The best-performing sector was Energy, up 2.8 per cent. The worst-performing sector was Utilities,
down 0.4 per cent. The best-performing stock in the S&P/ASX 200 was Champion Iron (ASX:CIA),
closing 6.2 per cent higher at $6.73. The worst-performing stock in the S&P/ASX 200 was
Credit Corp Group (ASX:CCP), closing 6.3 per cent lower at $32.65.
Nick Scali’s profit declined in the half year ending December 31 as the company closed
55 per cent of its store network and was hit with widespread disruption to its supply chain.
Nick Scali reported revenue of $180.3 million for the half, up 5.4 per cent on the same period last
year, but its underlying earnings before interest and tax was down 3.7 per cent to $55.1 million.
Westpac has announced an executive restructure that will result in
two departures from his senior management team, as pressure on profit margins means it has to cut
head office costs. Cash profits rebounded 74 per cent to $1.58 billion in its first quarter,
but the lender’s profit margins also narrowed. In 2021, Westpac established a 3-year plan to
reduce its cost base to $8 billion by 2024. The roles of Chief Risk Officer and Group Executive,
Financial Crime, Compliance and Conduct will be combined.
Now it’s time for a short break – but stay tuned for more news set to effect the trading day.
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Welcome back to the Morning Outlook report.
On Wall Street, The Dow Jones ended up 0.63%, the S&P 500 was up 0.94%,
and the NASDAQ closed 0.50% higher. Investors would be closely tracking US non-farm
payroll figures. Meanwhile, Westpac Banking Corporation (ASX:WBC) reported
a rise in net profit to US$1.82 billion in its first quarter update. While the
cash earnings stood at US$1.58 billion, up 1% excluding notable items, net interest margins
shrank by 8 basis points to 1.91%. The global stocks rebounded, tracing robust earnings from
US tech firms and OPEC’s plans for moderate oil output offset concerns over weak economic data.
Investors also ignored the pace of interest rate hikes by the central banks. Among the
major global markets, Stoxx 50 fell 0.1%, FTSE rose 0.6%, CAC rose 0.2% and DAX declined 0.04%.
The Bank of England (BoE) is scheduled to meet on Thursday, and markets expect it to hike
UK rates. A surprising fall in private payrolls on Wednesday weighed on US Treasury yields,
pulling them down as investors focussed on Friday's broader jobs report and the Fed’s
plan to hike interest rates this year. Crude oil prices jumped to seven-year highs after OPEC+
stuck to its planned output increase. It happened despite pressure from top
consumers to increase production more quickly. US crude rose 0.06% to US$88.25 per barrel.
Brent was at US$89.43, up 0.3% on the day.
Gold prices inch higher
Traders purchased gold after the US dollar and treasury yields eased
following the release of US jobs data.
Spot gold advanced 0.4% to US$1,808.48 per ounce by 14:01 EST (1901 GMT).
US gold futures closed 0.5% higher at US$1,810.30.
That’s all for our Morning Outlook report here on Kalkine TV. Have a great day trading
and stay tuned for more market updates and economic news live
throughout the day. This is Rachael Jones signing off for now.