The Australian share market looks set to open nearly half a per cent higher after signs that US political holdouts will support the Republicans’ tax reform bill pushed Wall Street’s key indexes to fresh record highs.
At 0700 AEDT on Monday, the share price futures index was up 29 points, or 0.48 per cent, at 6,037.
In the US, Republican Senator Bob Corker joined Senator Marco Rubio in signalling support. Rubio had criticised the initial proposal, saying it did not give enough tax relief to working families, while Corker, had expressed concerned about the bill’s impact on the federal deficit.
The Dow Jones Industrial Average rose 0.58 per cent, to 24,651.74, the S&P 500 gained 0.90 per cent, to 2,675.81 and the Nasdaq Composite added 1.17 per cent, to 6,936.58.
The S&P 500 and the Dow closed higher for the fourth week in a row, while the Nasdaq saw its first weekly gain out of three.
Locally, in economic news on Monday, the Australian Bureau of Statistics releases November’s new motor vehicle sales data while the CoreLogic capital city house prices for the week just ended is also due out.
No major equities news is expected.
The Australian market on Friday fell, driven by falls in banking and utilities stocks..
The benchmark S&P/ASX200 index dropped 14.3 points, or 0.24 per cent, to 5,997 points.
The broader All Ordinaries index lost 9.3 points, or 0.15 per cent, to 6,087.1 points.
Meanwhile, the Australian dollar is lower against the greenback with the US dollar index lifting 0.5 per cent the amid elevated sentiment.
The local currency was trading at 76.54 US cents at 0700 AEDT on Monday, from 76.72 on Friday.
CURRENCY SNAPSHOT AT 0700 AEDT:
One Australian dollar buys:
* 76.54 US cents, from 76.72 on Friday
* 86.20 Japanese yen, from 86.11 yen
* 65.18 euro cents, from 65.12 euro cents
* 57.48 British pence, from 57.08 pence
* 109.38 NZ cents, from 109.28 cents
The spot price of gold in Sydney at 0700 AEDT was $US1,254.72 per fine ounce, from $US1,254.93 per fine ounce on Friday.
BOND SNAPSHOT AT 0700 AEDT:
* CGS 4.50 per cent April 2020, 1.9538pct, unchanged
* CGS 4.75pct April 2027, 2027, 2.4981, unchanged
Sydney Futures Exchange prices:
* December 2017 10-year bond futures contract at 97.435 (implying a yield of 2.565pct), from 97.4725 (implying a yield of 2.5275pct) on Friday
* December 2017 3-year bond futures contract at 97.925 (2.075pct), from 97.955 (2.045pct).
(*Bond market closes taken at 1630 AEDT previous local session; currency closes taken from 1700 AEDT previous local session)