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Upbeat US index futures helped Aussie shares rise for a second day.
The S&P/ASX 200 punched temporarily back through the 6000 level, rising almost 81 points in morning action before paring its gain to 33 points or 0.6 per cent mid-session.
A broad rally lifted eight of the eleven sectors amid signs last night’s US market holiday may prove a circuit-breaker for the heavy selling that gripped Wall Street last week.
S&P 500 index futures climbed 14 points or 0.4 per cent, hinting at a positive open when US markets re-open tonight after the Labor Day long weekend. Dow futures rose 205 points or 0.7 per cent. However, futures traders remained wary of the Nasdaq, which bore the brunt of last week’s sell-off, sending its futures down 18 points or 0.2 per cent.
What’s driving the market
The mood on global markets has improved markedly this week without Wall Street setting the tone. European stocks rallied overnight for the first time in four sessions. The pan-European Stoxx 600 index advanced 1.67 per cent as benchmarks in Germany and the UK both put on more than 2 per cent.
US futures action suggested little concern at signs of strains in relations between the US and China, and the UK and the European Union. US President Donald Trump raised the prospect of decoupling the US economy from China overnight, exacerbating Chinese concerns following reports the White House was considering adding China’s largest computer chip-maker to a list of banned entities. Meanwhile trade talks between Britain and the EU have grown increasingly acrimonious, with Britain threatening to leave the union without a trade deal.
The outlook for Victoria continued to improve, with the average number of new coronavirus cases trending lower despite a modest uptick in today’s figures. The state recorded 55 new cases, up from 41 yesterday. The 14-day moving average used as a benchmark by the state government dropped to 89 from 96.
Going up
CSL climbed 2.5 per cent, rising for a second day following news yesterday that the health giant had signed a deal to manufacture millions of vaccines for the federal government if clinical trials are successful.
Shopping centre operator Scentre Group rose 3.4 per cent on news it collected $183 million in rent or 86 per cent of gross billings last month. The percentage collected was the highest since February, before the pandemic triggered a wave of store closures and missed payments. Vicinity Centres added 2.7 per cent, GPT Group 1.8 per cent and Charter Hall Retail 1.8 per cent.
Seventeen of the 20 market heavyweights in the S&P/ASX 20 advanced, with Scentre Group and CSL topping the list and Woolworths bring up the rear with a fall of 1.1 per cent following a management reshuffle. Miners Rio Tinto and BHP put on 1.1 per cent and 0.4 per cent, respectively. Three of the four big banks rallied, with gains ranging from 0.6 per cent for NAB to 0.1 per cent for ANZ. CBA put on 0.4 per cent. Westpac dipped 0.1 per cent.
Going down
Sydney Airport dropped 2.8 per cent after raising $2 billion at a discount. With retail shareholders reluctant to stump up, the airport completed the $695 million retail component of the raising with a bookbuild.
Several stocks traded without their dividends. Northern Star shed, 1.7 per cent, Origin Energy 1.4 per cent, Austal 1.2 per cent and GWA 0.4 per cent. Bluescope Steel gained 2.4 per cent.
Other markets
A choppy morning on Asian markets saw China’s Shanghai Composite drop 0.1 per cent, Hong Kong’s Hang Seng rise 0.3 per cent and Japan’s Nikkei add 0.6 per cent.
Oil pared its overnight loss. Brent crude inched up seven cents or 0.2 per cent to $US42.08 a barrel. Gold drifted $2.40 or 0.1 per cent lower to $US1,931.90 an ounce in electronic trade.
The dollar eased 0.08 per cent to 72.75 US cents.
What’s hot today and what’s not
Hot today: A three-year deal worth US$13 million helped lift shares in anti-counterfeiting specialist Dotz Nano (ASX:DTZ) 25 per cent to a three-year high. The company announced an exclusive deal to authenticate Breathe Medical’s face masks and other personal protective equipment (PPE) in the US and Canada. The deal is the fourth PPE authentication deal Dotz has struck in four months.
Not today: Telecom Uniti Group‘s (ASX:UWL) hopes of acquiring OptiComm hit a snag after First State Super lobbed an unsolicited bid for the fibre-to-the-premises wholesaler days before a shareholder meeting to consider Uniti’s proposal. OptiComm announced it had received a non-binding competing offer from the trustee of First State Super, but recommended shareholders take no action until the board engages with its new suitor. Uniti shares sank 7.8 per cent.
