ASX to rebound, Morrison unveils new defense pact to counter China

The Australian share market looks set to rebound on Thursday. Source: Getty

Good morning.

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

ASX: The Australian share market looks set to rebound on Thursday. According to the latest SPI futures, the ASX 200 is expected to open the day 33 points or 0.45 per cent higher this morning.

Wall Street: It was a strong night of trade on Wall Street, which saw the Dow Jones rise 0.7 per cent, the S&P 500 climb 0.85 per cent, and the Nasdaq jump 0.8 per cent.

AUD: The Australian dollar is trading at 0.7333 to the US dollar as at 7am this morning.

China: Australia is to partner with the US and UK in a groundbreaking pact in adopting a new nuclear-powered submarine fleet widely seen as a direct response to China's growing threat in the region. The move, which was announced this morning by Prime Minister Scott Morrison, will see the three countries share intelligence on a range of matters including artificial intelligence, cyber, underwater systems and long-range strike capabilities.

Jobkeeper: Two of Australia's most recognisable forgein-owned retailers doubled their profits after claiming JobKeeper. Specsavers claimed more than $90 million in JobKeeper, becoming one of the biggest publicly known recipients of the federal government's wage subsidy and its rival Luxottica – the parent company of OPSM and Sunglass Hut – more than doubled its profits too after receiving tens of millions of dollars in JobKeeper support.

Covid-19 vaccine: Major Australian employers that have announced COVID-19 vaccine mandates for staff are preparing to review medical exemptions on a case-by-case basis but will offer little flexibility to workers who refuse the jab for other reasons. Some of the country’s largest companies including Qantas and Telstra have confirmed coronavirus vaccines will be compulsory for some frontline staff and are now in conversations with their workforce about the rollout of these rules.

Commodities: Australian companies’ spending on resources exploration at home and abroad hit the highest in seven years in the June quarter, spurred by strong price gains across a range of commodities as the global economy recovers from the pandemic.

Unemployment: Economists expect the unemployment rate could spike to five per cent when August job figures are released, reflecting the impact of having half the population in COVID-19 lockdown. If correct, it will end the impressive decline in the jobless rate to a 13-year low of 4.6 per cent in July, after hitting 7.4 per cent during the depths of last year's recession.

Have a great day.

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