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Fear falls, index heavyweights deliver

Fear falls, index heavyweights deliver

Concerns about the impact of the COVID19 virus receded overnight. European shares lifted, crude and copper bounced and US indices held positive territory despite a late sell down. On the flipside of the risk coin, gold, the US dollar and bonds fell. Crypto currencies joined the party, with bitcoin rallying above US $10,000.

Commodity currencies rallied overnight as the US dollar slipped. CMC’s Major Crypto index extended recent gains to lift above 6,000 in overnight trading. Blockchain currencies are lifting across the board, evidenced by the Emerging Crypto index breaking through 1,400.

The pro-growth moves provide a positive background to solid half-year results from the two biggest Australian companies. Both Commonwealth Bank and blood products group CSL beat earnings forecasts. CBA profits fell 4.3%, but the bank defied predictions of a margin contraction and maintained the interim dividend at $2.00 per share. CSL lifted first half profit by 11% and re-iterated guidance for full year growth between 10% and 13%. The dividend is 95 US cents, or around AU $1.40.

Futures markets indicate optimism will continue through the Asia Pacific session. Bond futures are down, and share market futures are higher in Japan, China and Australia. There’s plenty of micro data for investors to examine today. Other companies revealing earning results include Carsales.com, insurer IAG, Computershare and Mineral Resources.

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