Good morning team, Chris Conway your Chief Market and Trading Strategist here with your First Look.
Wall Street surged overnight and the ASX is poised to open sharply higher after President Donald Trump promised a “phenomenal” tax announcement within three weeks while meeting with US airline executives at the White House.
Renewed hopes for a “big league” effort to lower taxes on US businesses has revised hopes that Trump will reassert his pro-growth agenda which has been to put it mildly swamped amid anti-protectionist and anti-immigration executive orders since he was inaugurated on January 20.
Trump, in effect, has renewed his own trade.
All three of Wall Street’s top benchmarks touched record highs. Eight of the 11 major S&P sectors were higher. The S&P 500 financial index is up 0.8% heading into the close and poised to snap a three-session losing streak.
SPI futures are pointing to a 27-point pop on the open, to 5636.
Local data: RBA Statement on Monetary Policy (11.30am AEDT), Housing finance December
Overseas data: China trade balance January; UK trade balance December, UK industrial production December; University of Michigan consumer confidence February
Capital Economics’s Chang Liu on China data: “Improving conditions in global manufacturing, stronger domestic growth and rising commodity prices should all have supported China’s trade values in January (02.00 GMT).
- SPI futures up 27 pts at 5636
- AUD at US76.27¢
- Dow Jones +0.8pc; S&P500 +0.8pc; Nasdaq +0.6pc
- FTSE100 +0.6pc, CAC +1.3pc, DAX +0.9pc
- Spot gold -0.5pc at $US1235.52 an ounce
- Brent oil +1pc at $US55.69 a barrel
- Iron ore +0.4pc at $US83.84 a tonne
What happened overnight?