Australian shares are expected to rise, following a rebound on Wall Street led by financials and technology stocks.
Markets at 7:10am (AEDT):
- ASX SPI 200 futures +0.6pc, ASX 200 (Monday’s close) -0.5pc at 5,791
- AUD: 77.45 US cents, 54.43 British pence, 62.19 Euro cents, 81.65 Japanese yen, $NZ1.06
- US: Dow Jones +2.8pc at 24,203, S&P 500 +2.7pc at 2,659, Nasdaq +3.3pc at 7,221
- Europe: FTSE -0.5pc at 6,889, DAX -0.8pc at 11,787, Euro Stoxx 50 -0.7pc at 3,274
- Commodities: Brent crude -0.6pc at $US70/barrel, spot gold +0.5pc at $US1,353.14/ounce
US markets surged over reports China and the US are willing to renegotiate tariffs and trade imbalances, calming down the market’s fears of a potential trade war for now.
Last week’s drop was fuelled in part by tensions surrounding US President Donald Trump’s move to impose tariffs on up to $US60 billion worth of Chinese imports, in addition to those already levied on Chinese solar panels, steel and aluminium.
The Dow Jones has gained 2.8 per cent, or 669 points, to 24,203.
The S&P 500 lifted by 2.4 per cent, with every posting solid gains, while the Nasdaq jumped by 3.3 per cent.
Microsoft, in particular, has skyrocketed by 7.6 per cent, after investment bank Morgan Stanley said the tech company’s total market value could hit $US1 trillion due to improved margins and its growth in cloud computing.
The Australian dollar rose 0.6 per cent to 77.45 US cents, and was steady against the British pound.
It also enjoyed a strong gain over the Japanese yen (+1.3pc), but has weakened against the euro (-0.2pc).
More to come.