US Banks support late session recovery on Wall Street: Aus shares to open lower

  • 3 years ago
Aussie futures are pointing to a fall at the open despite a late recovery on Wall Street. News of the new highly infectious Covid virus variant in the UK had the S&P 500 on track for its worse daily loss in a month, overshadowing optimism over US lawmakers finally agreeing on a stimulus deal. US indices managed to stage a recovery later in the session and unwind many of their losses as banks rallied on the news that the Federal Reserve will allow the industry to restart share buybacks in the first quarter of next year. The new strain has triggered more severe lockdowns and travel restrictions across Europe. The European Medicines Agency has authorised Pfizer’s vaccine for use in the EU. Regulators say that Europe is on track to begin rolling out vaccinations within a week. Meanwhile, on the commodities front the price of crude has slumped but iron ore soared 7.3 per cent higher. Markets: Wall Street closed mixed yesterday: The Dow Jones Industrial Average added 0.1 per cent, the S&P 500 lost 0.4 per cent and the NASDAQ closed 0.1 per cent lower. European markets closed lower, London’s FTSE dropped 1.7 per cent, Paris fell 2.4 per cent and Frankfurt closed 2.8 per cent lower. Asian markets closed mixed, Tokyo’s Nikkei fell 0.2 per cent, Hong Kong’s Hang Seng lost 0.7 per cent and China’s Shanghai Composite closed 0.8 per cent higher. Taking all of this into equation, the SPI futures are pointing to a 0.4 per cent fall. Yesterday, the Australian share market closed 0.1 per cent lower at 6670. Company news: A consortia of Charter Hall Group (ASX:CHC) managed funds is set to purchase the David Jones flagship Elizabeth Street store for $510 million. The building comprises 12 levels and over 3,500 square metres of prime Sydney CBD real estate. The consortia is made up of a 50 per cent interest held by Charter Hall Long WALE REIT (ASX:CLW), a 25 per cent interest held by the Charter Hall DVP partnership and a 25 per cent held by the Charter Hall Group (ASX:CHC). The con...