The Australian share market looks set to open more than a half a per cent higher, ignoring the global trend of falling markets with investors apparently still worried about the trade spat between the US and China.
At 0700 AEST on Tuesday, the share price futures index was up 35 points, or 0.57 per cent, at 6,154.
Key US, European and Tokyo markets have closed in the red in the offshore session while China’s key indexes were closed.
On Wall Street, the Dow and S&P fell modestly, ending well off session lows, as gains in energy shares helped curb declines stemming from trade war concerns after China’s retaliation to US tariffs.
The Dow Jones Industrial Average fell 0.41 per cent, the S&P 500 lost 0.21 per cent, while the Nasdaq Composite added 0.01 per cent.
Locally, in economic news on Tuesday, the Reserve Bank of Australia releases the minutes of its June policy meeting, hte Australian Bureau of Statistics’ March quarter capital city property price indexes is due out and the ANZ-Roy Morgan Consumer Confidence weekly survey is also scheduled.
No major equities news is expected, but investors will likely keep a keen eye on Atlas Iron after Gina Rinehart’s Hancock Prospecting on Monday made an all-cash takeover bid that values the junior miner at $390 million.
The Australian market on Monday recovered from early weakness to eke out a tiny gain despite fears of a US-China trade war and lower commodity prices weighing upon mining and energy stocks.
The benchmark S&P/ASX200 closed up 10.1 points, or 0.17 per cent, at 6,104.1 points, while the broader All Ordinaries index was up 7.5 points, or 0.12 per cent, to 6,212.8 points, supported by strength among the big four banks.
Meanwhile, the Australian dollar has continued its slide against the US dollar which has remained unchanged in the offshore session.
The local currency was trading at 74.24 US cents at 0700 AEST on Tuesday, from 74.44 on Monday.
CURRENCY SNAPSHOT AT 0700 AEST:
One Australian dollar buys:
* 74.24 US cents, from 74.44 on Monday
* 82.07 Japanese yen, from 82.29 yen
* 63.87 euro cents, from 64.30 euro cents
* 56.05 British pence, from 56.18 pence
* 106.99 NZ cents, from 107.25 cents
The spot price of gold in Sydney at 0700 AEST was $US1,278.10 per fine ounce, from $US1,298.97 per fine ounce on Monday.
BOND SNAPSHOT AT 0700 AEST:
* CGS 4.50 per cent May 2021, 2.102pct, unchanged
* CGS 4.75pct May 2028, 2.671pct, unchanged
Sydney Futures Exchange prices:
* September 2018 10-year bond futures contract at 97.310 (implying a yield of 2.690pct), from 97.315 (implying a yield of 2.685pct) on Monday
* September 2018 3-year bond futures contract at 97.850 (2.150pct), from 97.865 (2.135pct).
(*Bond market closes taken at 1630 AEST previous local session; currency closes taken from 1700 AEST previous local session)