A flat open is tipped for Australian shares even though major US and European markets surged to fresh records overnight amid renewed coronavirus hopes.

The SPI200 futures contract was higher at 7000.0 points at 0801 AEDT on Wednesday despite a another strong performance from US stocks overnight.

The Dow industrials, S&P 500 and Nasdaq all set new records and European stocks jumped higher after China’s senior medical adviser suggested the deadly coronavirus may be over by April.

The World Health Organisation, or WHO, characterised the coronavirus as a “very grave” international threat. The virus has killed more than 1,000 people.

However the assurance from the Chinese medical adviser has eased investors’ minds. Oil prices lifted on the outlook.

Meanwhile, local profit reporting season continues on Wednesday with market heavyweights Commonwealth Bank and CSL set to release their results.

The Aussie dollar is buying 67.14 US cents from 67.16 US cents at Tuesday’s close.