Australian shares are poised for another record day after US stocks rose with the signing of a long-awaited trade deal with China.
The SPI200 futures contract was up 17 points, or 0.25 per cent, at 6,947 at 0800 on Thursday following a new high on the Australian Stock Exchange of 6,996.8 points on Wednesday.
The rise comes after the first phase of a trade agreement between the US-China was signed overnight in the US after two years of tense negotiations.
US stocks rose after the signing and Australian shares look set to follow into record territory and touch the 7,000 points mark on the ASX200.
CMC Markets chief market strategist Michael McCarthy said while there’s no particular significance to 7,000 level, it does matter in the minds of individual investors.
If they see the ASX200 failing to break the 7,000 level, momentum traders may see it as a signal to sell, which would accelerate a pullback, Mr McCarthy said.
The gold price rose after the trade deal was signed between the two biggest economies as details of the agreement failed to soothe investor concerns about trade differences.
The Australian dollar was buying 69.05 US cents, up from 68.96 US cents at Wednesday’s close.