Earnings season kicked off with PepsiCo’s strong quarterly results, while a surge in oil prices helped to boost Wall Street.
Markets at 7:05am (AEST):
- ASX SPI 200 futures +0.3pc to 6,227, ASX 200 (Tuesday’s close) -0.4pc at 6,258
- AUD: 74.41 US cents, 56.04 British pence, 63.34 Euro cents, 82.55 Japanese yen, $NZ1.09
- US: Dow Jones +0.6pc at 24,920, S&P 500 +0.4pc at 2,794, Nasdaq flat at 7,759
- Europe: FTSE flat at 7,692, DAX +0.5pc at 12,610, Euro Stoxx 50 +0.4pc at 3,473
- Commodities: Brent crude +1.2pc at $US79.02/barrel, spot gold -0.2pc at $US1,255.23/ounce, iron ore flat at $US63.91/tonne
The Dow Jones index rose 143 points, or 0.6 per cent to 24,920. The S&P 500 gained 0.3 per cent to reach a five-month high, while the Nasdaq closed at breakeven point.
The consumer staples sector lifted 1.3 per cent and was the biggest boost to the S&P 500.
It was driven by PepsiCo shares which surged 4.8 per cent, its biggest single-day jump in around seven years — after the company’s results topped estimates on strong sales of snacks.
Procter & Gamble stocks rose 2.5 per cent, while Coca-Cola was up 1.3 per cent.
Overall, the profits of S&P companies are expected to grow by about 21 per cent this quarter, according to Thomson Reuters data.
It was also a solid night in European markets as investors focused more on corporate earnings season, rather than the United States starting trade wars with other nations.
Paris rose 0.7 per cent, Frankfurt climbed 0.5 per cent, while London was flat.
Australian consumers and mortgages in focus
The Australian share market is expected to rise in early trade, with ASX futures up 16 points.
In local economic news, the official housing finance figures (May) are out today, along with Westpac’s consumer confidence report.
The Australian dollar has weakened against major currencies, falling 0.2 per cent to 74.4 US cents.
It has also fallen against the British pound (-0.3pc), Euro (-0.3pc), Japanense yen (-0.4pc) and New Zealand dollar (-0.3pc).
More to come.