ASX set to drop; restrictions lift across four states

Restrictions are being eased across several states from today. (Photo by Saeed KHAN / AFP) (Photo by SAEED KHAN/AFP via Getty Images)

Good morning.

Here’s Yahoo Finance’s Monday morning wrap:

ASX: The Australian share market is expected to dip slightly, ahead of a big week of local economic data. The futures market hints that the S&P/ASX200 may fall 24 points when trade begins on Monday morning.

This comes after the benchmark index closed last week down 95.4 points, or 1.63 per cent, to 5,755.7 points, while the All Ordinaries index fell 85.6 points, or 1.44 per cent, to 5,872.2.

Investors are expecting a correction in the share market after nine straight weeks of gains. We’re also holding our breath for economic data: the RBA will meet on Tuesday and GDP figures are to be released on Wednesday, which will determine whether Australia is in a technical recession.

AUD: On Friday, one Australian dollar was buying 66.55 US cents, up from 66.13 US cents at the close of trade on Thursday.

Wall Street: US stocks have finished mostly higher after President Donald Trump announced measures against China that were less threatening to the US economy than investors had feared.

The Dow ended the session slightly lower, but all three indexes registered gains for the month and the week, while the S&P 500 initially extended losses.

More of Australia is opening up. Four states are easing restrictions as of today, including NSW, Victoria, Queensland and South Australia. Here’s what you can do now:

  • QLD: From midday Queenslanders will be able to travel statewide, while pubs, clubs, restaurants and cafes will be allowed to seat up to 20 people. The state's strict border closure will remain in place.

  • NSW: Pubs, beauty salons and museums reopen and holiday travel inside state boundaries will also be permitted.

  • VIC: Libraries, galleries, museums, places of worship and beauty clinics are among the venues that will be allowed to reopen with no more than 20 people.

  • SA: Venues can have up to 80 patrons provided they are contained to groups of 20 in separate rooms or areas.

The lipstick effect is a theory that during periods of economic crisis, consumers are more willing to spend on life’s more affordable luxuries that make them feel good. But here’s what it says about women’s finances.

Good news: More funding where it’s needed. The Morrison government is promising $15 million to set up nine regional university centres, which will provide study spaces, academic support, video conferencing and other support for students studying via distance at partner universities.

The NSW RFS is also getting an extra 100 job openings and more than 100 new vehicles as the state government prepares for the next bushfire season.

Speaking of NSW, state premier Gladys Berejiklian’s government has announced a pay freeze to public servants for 12 months, which hasn’t been received well. But now NSW Treasurer Dominic Perrottet is offering a one-off $1,000 peace offering. More on that here.

–with AAP

Tune into Episode 5 of the Yahoo Finance Breakfast Club: Live Online series on Thursday 4th June 10am AEST.

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