The Australian market is set to open higher again this morning following Wall Street’s second day of gains.
Here’s what we saw:
- At about 6.30 am (AEST) the SPI futures index was up seven points, or 0.1%.
- The Australian dollar is back above US73c, at US73.05c.
- Iron ore continued a modest rebound from recent big falls, rising 1.3% to $US108.90 a tonne.
- Tin was up 1% pushed towards record highs as supply tightened.
- Copper fell 0.2%.
- The gold futures price fell by US$29 an ounce or 1.6% to U$1,749.80 an ounce.
- Spot gold was trading near US$1,746 an ounce at the US close.
- Iron increased by US$1.35 a tonne or 1.3% to US$108.90 a tonne as traders expect China's peak autumn demand to support the steelmaking raw material's rebound.
Australian markets
Tech and energy stocks rallied on Thursday as global economic uncertainties waned.
The ASX was up 1% as the S&P/ASX 200 finished the session at the 7,370.2 mark, having started the week at 7,390.4.
It was our tech stocks that really took the market by the scruff of the neck.
Australian technology stocks followed in the footsteps of US peers: the sector was up 3% for the session.
Afterpay gained 4.2% to $131.54 and Xero increased 2.8% to $153.07.
Meanwhile, Federal Treasurer Josh Frydenberg will today speak out against Australia’s ‘perceived’ slow transition to a low emissions future.
Frydenberg is set to warn investors that blacklisting companies in emissions-intensive industries would have dire consequences and that they should help finance those companies’ transition to a clean-energy future.
The treasurer is likely to cite BHP and Fortescue’s ability to move towards the “cutting-edge of innovation and technological change”.
The government looks to have changed its tune on net-zero rhetoric with Frydenberg saying on ABC TV this morning, “I certainly see it as being part of our interests and many countries, over 100, have agreed to net-zero.
“We're making progress and we haven't made any formal decisions, but today's speech is about the changes that are occurring in financial markets as a result of climate change.
“Whether it has been the Industrial Revolution or the digital age, financial markets have always factored in these structural shifts and climate change is no different and this is having an impact on Australia because we are so heavily reliant on foreign investment.”
Australian indices
- ASX 200 rose 1% to 7,370.20
- ASX24 futures rose 0.1% to 7,355
- S&P/ASX Small Ordinaries rose 2.06%% to 3,528.60
- All Ordinaries rose 1.15% to 7,681.30
US markets
Wall Street stocks enjoyed a second day in a row of gains.
The market not only shrugged off disappointing labour data but rallied on improved sentiment about Evergrande’s woes and US monetary policy.
Beijing stepped in to defuse the Evergrande situation and avoid a bad debt domino effect that threatened the nation.
Also quelling fears is more certainty around the Federal Reserve’s intentions.
Chair Jerome Powell has stated the central bank is close to tapering asset purchases. The official announcement is expected in November.
“The Fed still remains the number one story, so any clarity you get from them is looked upon very favourably,” JJ Kinahan, chief market strategist at TD Ameritrade (NASDAQ:AMTD) said.
On the company front, shares of IT services provider Salesforce.com jumped 7.2% after it raised its annual earnings forecast. Accenture (NYSE:ACN) shares gained 2.5% after the IT consulting firm boosted its first-quarter outlook. Devon Energy shares soared 7.8% with oil prices lifting.
US indices
- Dow Jones rose 1.5% to 34,764.82
- S&P 500 rose 1.2% to 4,448.98
- Nasdaq rose 1% to 15,052.24
European markets
European share markets were also generally higher on Thursday, with most indices gaining, except for the UK FTSE index which fell by 0.1% after the Bank of England said the case for higher interest rates "appeared to have strengthened" after it lifted its inflation forecasts for the year.
In London trade, shares in Rio Tinto rose by 0.4%, but BHP shares were little changed.
European indices
- STOXX 600 rose 0.93%% to 467.50
- German Dax rose 0.9% to 15,643.97
- UK FTSE fell 0.1% to 7,078.35