The Australian share market is headed for a moderate boost, as it continues to recover from last week’s heavy sell-off.
Markets at 7:30am (AEDT):
- ASX SPI 200 +0.5pc at 5,886, ASX 200 (Tuesday’s close) +0.6pc at 5,870
- AUD: 71.38 US cents, 54.14 British pence, 61.67 Euro cents, 80.11 Japanese yen, $NZ1.08
- US: Dow Jones +2.2pc at 25,798, S&P 500 +2.2pc at 2,810, Nasdaq +2.9pc at 7,645
- Europe: FTSE +0.4pc at 7,059, DAX +1.4pc at 11,777, CAC +1.5pc at 5,173, Euro Stoxx 50 +1.5pc at 3,257
- Commodities: Brent crude +1pc at $US81.58/barrel, spot gold -0.2pc $US1,224.03/ounce, iron ore -0.2pc at $US71.50/tonne.
ASX futures are up 32 points, driven by a rebound on Wall Street and European markets overnight.
Meanwhile, the Australian dollar has lifted slightly to 71.4 US cents.
It is also buying 54.1 British pence, 61.6 euro cents and 80.1 Japanese yen.
Solid profits fuelling the rally
Wall Street enjoyed its biggest one-day surge since March — only a week after suffering its worst fall since February.
Investors are optimistic again after some of the United States’ biggest companies — including Johnson & Johnson, Goldman Sachs and Morgan Stanley — posted strong quarterly earnings.
It was enough to put aside their concerns about rising interest rates and simmering US-China trade tensions, which led to a rout in global markets last week.
Around 95 per cent of stocks on the benchmark S&P 500 index posted gains. Technology stocks, which drove the recent sell-off, were among the best performers.
This led to the tech-heavy Nasdaq index jumping 2.9 per cent to 7,654.
The S&P 500 lifted 2.2 per cent to 2,810. The Dow Jones index rose 2.2 per cent (or 548 points) to 25,798.
Gold prices were still trading at their highest levels in two-and-a-half months ($US1,223 an ounce).
The price of Brent crude oil rose sharply overnight to $US81.36 per barrel.
Partly this was due to concerns about disrupted supply from the Middle East in the near future — given the upcoming US sanctions on Iran and growing tensions with Saudi Arabia over the disappearance of journalist Jamal Khashoggi.
More to come.