ASX to drop ahead of investment figures and Tas budget due today

ASX to drop as NSW faces jab shortage for workers. Source: Getty

Good morning.

Here's what you need to know about finance markets for today.

ASX: The Australian share market looks set to fall this morning after markets turn cautious. According to the latest SPI futures, the ASX 200 is expected to open the day 13 points or 0.2 per cent lower at the open.

Global markets: US markets closed flat overnight. The Dow Jones rose 0.01 per cent, S&P 500 increased 0.1 per cent and Nasdaq hiked 0.2 per cent following Pfizer COVID-19 vaccine apporval in the US. The FTSE and DAX both rose 0.03 per cent on improved European sentiment.

Aussie dollar: The Australian dollar is trading at 0.7275 to the US dollar as at 7am this morning.

Recession risk: AMP Capital chief economist Shane Oliver said an economic contraction in the June quarter was a “not insignificant risk”, putting the odds of a surprise double-dip recession at 45 per cent. His comments followed weaker than expected construction activity in the three months to June 30. Overall activity lifted just 0.8 per cent, well below market expectations of 2.8 per cent.

Staff shortage: Supermarkets, takeaway outlets and fast-food franchisees risk disruptions and staff shortages from new rules requiring tens of thousands of workers to be vaccinated to work outside Sydney COVID-19 hotspots.

Tas budget: Health and coronavirus contingencies are set to be centrestage in a Tasmanian budget which isn't likely to feature any big surprises. Premier and Treasurer Peter Gutwein will on Thursday hand down the island state's 2021/22 budget, his eighth since the Liberals came to power in 2014.

Investment: Economists forecast that ABS quarterly investment figures, due out today, will show a rise of 2.5 per cent building on the gains recorded over the previous two quarters as the economy rebounded from last year's recession, even despite the current lockdowns.

Westpac: Mortgage-holders who switch from the average variable rate to Westpac’s new 1.99 per cent rate stand to save as much as $49,329 in two years, as banks continue to battle it out for homeowners’ dollars.

Have a great day.

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