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  • Stock Futures Mixed on Vaccine Doubts; Yields Down: Markets Wrap

    Stock Futures Mixed on Vaccine Doubts; Yields Down: Markets Wrap(Bloomberg) — U.S. and European equity futures were mixed along with stocks in Asia as reports on Moderna Inc.’s coronavirus vaccine added to concern that a successful way to beat the pandemic remains a long way off. Treasuries held an overnight advance.Japan and India saw the bulk of gains in a mixed Asian session, with Shanghai and Hong Kong in the red. U.S. futures nudged up, while European contracts dropped. The S&P 500 lost ground in the final hour of trading Tuesday, and closed down. Riskier assets had started the week on the front foot after Moderna had fueled hopes for a coronavirus vaccine, but investors are struggling to maintain the optimism. Crude oil slipped below $32 a barrel in New York.“We are being fairly cautious,” Shawn Matthews, founder and chief investment officer at Hondius Capital Management LP, said on Bloomberg TV. “If you look at the economy, it feels like it’s the summer of hope right now, where everyone is hoping it’s going to turn around.”Large money managers from Capital Group Inc. to BlackRock Inc. are keeping their faith with equities despite warning calls from some corners of Wall Street. Still, headwinds remain for stocks, not least a deteriorating U.S.-China relationship. In a further sign of tightening scrutiny on capital flows to the Asian nation, Nasdaq is set to unveil new rules for initial public offerings including tougher accounting standards that will make it more difficult for some Chinese companies to list on the exchange.Walmart and Home Depot both suspended their outlooks for the year, the latest companies to show the difficulties in predicting the road ahead. Earlier, Federal Reserve Chairman Jerome Powell reiterated during a Senate hearing that the central bank is ready to use all the weapons in its arsenal to help the U.S. economy endure the coronavirus pandemic.Meantime, the New Zealand dollar rose after comments from central bank governor Adrian Orr suggested any move to bring interest rates below zero remain some way off. In Japan, Tokyo Stock Exchange was among stocks which surged amid speculation that it may be a contender to join the Nikkei 225 equity index.These are some of the main moves in markets:StocksFutures on the S&P 500 rose 0.4% as of 7 a.m. in London. The gauge fell 1.1% on Tuesday.Japan’s Topix index rose 0.6%.Hong Kong’s Hang Seng fell 0.2%.Shanghai Composite dipped 0.4%.South Korea’s Kospi added 0.4%.Australia’s S&P/ASX 200 Index gained 0.3%.Euro Stoxx 50 futures dropped 0.4%.CurrenciesThe yen was little changed at 107.75 per dollar.The offshore yuan held at 7.1153 per dollar.The euro bought $1.0945, up 0.2%.BondsThe yield on 10-year Treasuries remained at 0.69%.Australia’s 10-year yield fell three basis points to 0.95%.CommoditiesWest Texas Intermediate crude was at $31.99 a barrel, up 0.1%.Gold rose 0.2% to $1,747.63 an ounce.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

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  • ASX 200 ends the day higher, EML share price rises another 12%

    ASX 200

    The S&P/ASX 200 Index (ASX: XJO) ended the day higher by 0.24% to 5,573 points after being down in the morning.

    The New South Wales government is now encouraging people to visit regional NSW in another sign of areas of the country opening up.

    Strongest ASX 200 performance

    The biggest rise within the ASX 200 belonged to EML Payments Ltd (ASX: EML). The EML share price went up 12% today.

    It gave a trading update which included solid growth in certain sections of the business. While the gift & incentive section is suffering, other areas are still growing nicely.

    Despite everything that’s going on the company managed to generate $2.7 million of earnings before interest, tax, depreciation and amortisation (EBITDA) including the PFS acquisition. It ended April 2020 with $125 million of cash.

    Australian Agricultural Company Ltd (ASX: AAC) moo-ves upwards

    The cattle company announced its FY20 report today.

    AAC announced that Wagyu beef sales were up 20% after price and volume growth. The company generated an operating profit of $15.2 million compared to a loss of $22.9 million last year.

    It managed to generate its strongest operating cashflow in three years of $20.1 million.

    AAC said that COVID-19 had a negligible impact on FY20 results, the impact on FY21 is uncertain and couldn’t be reasonably estimated.

    The business saw its share price rise 12.8% today.

    Fletcher Building Limited (ASX: FBU) lets go of some workers

    Fletcher building provided a COVID-19 update today.

    It recorded an earnings before interest and tax (EBIT) loss of around $55 million in April, which excludes significant items. The loss was made in New Zealand whereas Australia was a breakeven result.

    As a result of the difficult conditions, Fletcher Building is reducing its workforce by around 10% which equates to around 1,000 jobs in New Zealand and another 500 in Australia.

    The share price of the construction company dropped 2.8% today.

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    Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Emerchants Limited. The Motley Fool Australia has recommended Emerchants Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

    The post ASX 200 ends the day higher, EML share price rises another 12% appeared first on Motley Fool Australia.

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  • Investing $1,000 in these 3 ASX shares would be a smart move

    If you’re looking to invest $1,000 into the share market right now, then there are a lot of quality options to choose from.

    Three ASX shares that I think would be smart choices are listed below. Here’s why I like them:

    Jumbo Interactive (ASX: JIN)

    Jumbo Interactive is an online lottery ticket seller and the operator of the Oz Lotteries website. In addition to this, the company has a Software as a Service (SaaS) business, Powered by Jumbo Software. This is the most exciting part of the business in my opinion. The total addressable market for its SaaS business is significant. Last year management noted that approximately 7% of the world’s lottery tickets are sold online, which implies that 93% of a ~US$300 billion global market has yet to transition online. I suspect a greater portion of ticket sales will be made online in the future and for its SaaS business to underpin strong earnings growth over the next decade.

    REA Group Limited (ASX: REA)

    Another option for a $1,000 investment is REA Group. It is the operator of the realestate.com.au website and several international equivalents. Although the housing market is struggling at the moment, this has not stopped the company from growing its earnings. During the third quarter it delivered an 8% lift in EBITDA to $119.6 million despite dealing with a 7% decline in listings. And while listings in the fourth quarter are likely to be markedly lower, its cost cutting plan should offset some of this weakness. Looking further ahead, when conditions improve I expect REA Group’s earnings growth to accelerate and drive its share price higher.

    Zip Co Ltd (ASX: Z1P)

    A final option to consider is growing buy now pay later provider, Zip Co. There were concerns that Zip Co’s business model could struggle if trading conditions deteriorated materially. Pleasingly, this hasn’t proven to be the case. The company recently released a trading update which revealed that transaction volume jumped 86% to $181.6 million in April. But perhaps the even better news was that its net bad debts came in at just 1.99%. This is higher than previously, but at a very strong level compared to many of its peers. I’m confident its strong growth will continue over the coming years. Especially given its new verticals, international expansion, and the growing popularity of the payment method with consumers and merchants.

    And if you have some funds leftover, these five recommendations below look like potential market beaters…

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    James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Jumbo Interactive Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia has recommended Jumbo Interactive Limited and REA Group Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

    The post Investing $1,000 in these 3 ASX shares would be a smart move appeared first on Motley Fool Australia.

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