Good morning team, Chris Conway your Head of Research here with your First Look.
ASX shares are poised to leap at the open as banks and base metals producers surge on optimism about the global economy.
SPI futures are up 55 points heading into the NY close, reflecting a surge in equities across Europe and on Wall Street.
In London, the FTSE 100 closed at a record high, lifted by banks and miners. In New York, the Dow cleared the 21,000 mark with ease, also paced by banks.
The surge is being credited to US Federal Reserve policymakers who made it clear a rate increase will be discussed later this month.
Odds that rates will rise at the conclusion of the Fed’s March 14-15 gathering reached as high as 84%; that also helps make three hikes more likely this calendar year—tipped by the Fed in December though discounted by the majority of market players until this week.
As a sign of the strength of the global economy, manufacturing data from China and the US in the last 24 hours show that the world’s two biggest economies are maintaining upward momentum. Capital Economics points to a policy-driven rebound in China, stabilising oil prices and the drag from the global financial crisis has finally passed.
Local data: Trade balance Janaury, Building approvals January
Overseas data: Euro zone PPI January, Euro zone unemployment rate January; UK Markit/CIPS construction PMI February
- SPI up 55 points at 5738
- AUD at US76.82¢
- Dow Jones +1.5%; S&P500 +1.4%; Nasdaq +1.3%
- FTSE100 +1.6%, CAC +2.1%, DAX +2.0%
- Spot gold +0.1% at $US1249.61 an ounce
- Brent oil -0.2% at $US56.38 a barrel
- Iron ore flat at $US91.26 a tonne
What happened overnight: