Good morning team, Chris Conway your Chief Market and Trading Strategist here with your First Look.
SPI futures are pointing to a circa 30-point gain on the open this morning, after US markets rallied strongly on Friday night.
All three major US benchmarks closed at record highs.
The catalyst for the move higher came in the form of Republican agreement on the details of a bill that will cut taxes for businesses and individuals.
A vote on the bill is expected in the next few days and there’s an expectation that President Donald Trump will sign it into law ahead of Christmas, securing his first legislative win as the sun sets on the first year of his presidency.
Strength in commodities should also provide a boost; US listed shares of Rio Tinto added 2.2%, and BHP Billiton 1.8% on Friday night, whilst the spot price of iron ore rebounded 2.2%, gold edged higher, and copper and aluminium were both higher.
What’s on today:
Local data: MYEFO, New motor vehicle sales August; on Tuesday, minutes from the RBA’s latest policy meeting; on Wednesday, WBC leading index November and Skilled vacancies November
Overseas data: Japan trade November; Euro zone CPI November; US NAHB housing market index December; on Thursday NZ releases third quarter GDP, Bank of Japan holds a policy meeting
SPI futures up 29 points or 0.5% at 6037
AUD -0.3% to 76.46 US cents
On Wall St: Dow +0.6%, S&P 500 +0.9%, Nasdaq +1.2%
In New York, BHP +1.8% Rio +2.2%
In Europe: Stoxx 50 +0.1%, FTSE +0.6%, CAC -0.2%, DAX +0.3%
Spot gold +0.3% to $US1256.44 an ounce
Brent crude -0.1% to $US63.23 a barrel
US oil +0.6% tot $US57.36 a barrel
Iron ore +2.2% to $US70.50 a tonne
Dalian iron ore +6.2% to 531.5 yuan
LME aluminium +0.8% to $US2066 a tonne
LME copper +1.4% to $US6886 a tonne
10-year bond yield: US 2.35%, Germany 0.3%, Australia 2.52%
What happened overnight: