Wall Street set new records, iron ore soared and oil prices rallied again – it all points to a strong start on the ASX this morning.
- At about 6.30am (AEST) the SPI futures index was up 0.3%.
- The Australian dollar was higher at US72.54c.
- Iron ore soared, up 8.9% to $US148.60 a tonne.
- Brent crude rose 3.3% to $US71.05 a barrel.
- Gold futures were up 0.1 per cent at $US1,808.50 an ounce.
Australian markets
Reporting today will be Afterpay Ltd, Nine Entertainment Co Holdings Ltd, Medibank Private Ltd, WiseTech Global Ltd and Seven Group Holdings Ltd, which today announced the retirement of chairman Kerry Stokes.
Stokes, who has been in the role since the company was formed in April 2010, will hand the reins to former Coca-Cola Amatil boss and board member Terry Davis.
“SGH shareholders have an exceptional board of experienced directors, a talented, highly capable and hardworking management team and a strategic portfolio of businesses," Mr Stokes said.
"I am very proud of Seven Group and its track record and, as I pass the baton to Terry, I am very confident in its future. Terry’s contribution to Seven Group is first class and I know he will make an excellent chairman."
Afterpay's charge across the US and global markets has continued and has seen it lift its underlying sales by 90% and revenue by 78% in its last full-year results.
These results have been recorded before a planned $39 billion merger with US tech giant Square.
The merger with Twitter founder Jack Dorsey's Square is the biggest ever merger in Australian history and will make Afterpay one of the most successful businesses in Australian history, securing its future in the competitive buy now pay later (BNPL) market.
Australian indices
- ASX 200 rose 0.17% to 7,503.00.
- ASX24 futures rose 0.3% to 7,454.
- S&P/ASX Small Ordinaries rose 0.15% to 3,517.90.
- All ordinaries rose 0.16% to 7,773.70.
US markets
US stocks were higher on the back of COVID-19 optimism, which sent oil prices soaring and the S&P 500 and Nasdaq to new records.
US markets were buoyed by positive earnings reports and upbeat economic data that underpinned the third straight positive session for major Wall Street indices.
People in the US now believe the worst of COVID is behind them and believe that will be reflected in Federal Reserve Chair Jerome Powell’s scheduled speech on Friday.
According to Adam Sarhan of 50 Park Investments, US markets are convinced the central bank will keep stimulus in place for an extended period, regardless of any policy changes.
“The bulls showed up again and defeated any bearish pressure on the market,” Sarhan told AFP. “It’s a tug of war between the bulls and the bears, and bears won last week but now the bulls win that fight.”
US Indices
- Dow Jones rose 0.1% to 35,366.26.
- S&P 500 rose by 0.2% to 4,486.23.
- Nasdaq rose 0.5% to 15,019.8.
European markets
As with the US, the European markets were helped by the rise in basic resources and better COVID sentiment.
Travel stocks rose 2% after US health regulators on Monday approved a Pfizer (NYSE:PFE)-BioNTech COVID-19 vaccine.
There is some investor caution lingering related to the meeting of global central bankers later this week.
In London trade, shares in Rio Tinto rose by 3.0% and shares in BHP lifted by 1.3%.
European indices
- STOXX 600 fell 0.019% to 471.79.
- German Dax rose 0.3% to 15,905. 85.
- UK FTSE rose 0.2% to 7,125.78.