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Dow Jones falls 329 points, struggles to ‘find confidence’ amid coronavirus

April 14, 2020 by www.abc.net.au

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By business reporter David Chau, wires

Updated April 14, 2020 07:52:57

Photo: Investors are expecting US companies to report disappointing profits in the March quarter. (AP: Mark Lennihan)
Related Story: So far, so good — but don’t count on a quick coronavirus recovery
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Map: Australia

Wall Street has ended its first day back from Easter with mixed results as the number of COVID-19 infections and deaths continue to rise in the United States.

Market snapshot at 7:45am (AEDT):

  • ASX SPI futures +0.8pcpc at 5,442, ASX 200 (Thursday’s close) +3.5pc at 5,387
  • AUD: 63.77 US cents, 50.97 British pence, 58.46 Euro cents, 68.72 Japanese yen, $NZ1.048
  • US: Dow Jones -1.4pc at 22,391, S&P 500 -1pc at 2,762, Nasdaq +0.5pc at 8,192
  • Europe: (closed for Easter long weekend)
  • Commodities: Brent crude +1.5pc at $US31.94/barrel, spot gold +1.5pc at $US1,714.07/ounce, iron ore +1pc at $US85.60/tonne

America’s big banks will unveil their first-quarter results this week, and it is expected to be a painful start to the earnings season due to the pandemic, particularly given the widespread business lockdowns and a surge in unemployment.

The tech-heavy Nasdaq lifted by 0.5 per cent, while the benchmark S&P 500 fell by 1 per cent.

The Dow Jones Industrial Average dropped 329 points, or 1.4 per cent, to 23,391.

“The market wants to find confidence in some of the recent developments, but I still think it’s going to be a very long slog,” said Gennadiy Goldberg, senior rates strategist at TD Securities in New York.

European markets were closed.

Meanwhile, Australian shares could start their first day back from the long weekend on a high note.

ASX futures rose by 43 points, but that was when it last traded on Thursday.

The Australian market is more likely to follow the pessimistic lead from the US, and begin its day lower.

The Australian dollar has lifted to 63.8 US cents.

Spot gold jumped to a seven-year high of $US1,714 an ounce.

Oil markets were mixed with Brent crude rising 1.1 per cent to $US31.83 a barrel.

However, West Texas crude dropped 1.5 per cent to $US22.42 a barrel.

The fall was despite OPEC and the world’s major oil producing nations agreeing on Sunday to cut oil production by a record 9.7 million barrels per day.

More to come.

Topics: stockmarket, currency, company-news, business-economics-and-finance, australia, united-states

First posted April 14, 2020 07:38:35

Contact David Chau

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