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 pop on the open, after US markets and metals surged overnight.
Copper, zinc and other base metal prices rebounded. Zinc added 3.2%, aluminium 2.1%, nickel 1.6% and copper advanced 1.2%. Iron ore also advanced, following Chinese iron ore and steel futures.
US listed shares of Rio Tinto rose 2.7% and BHP Billiton’s closed up 1.6% in NY.
Wall Street posted strong gains, with the three major indexes adding around 0.9% each. Traders focused on positive earnings from American Express and CSX.
There was also talk around Trump’s tax policy, with US Treasury Secretary, Steven Mnuchin, saying that the effort to reform the tax system would be pursued regardless of what happens on health care. “We’re pretty close to being able to bring forward what is going to be major tax reform.”
What’s on today:
No local data
Overseas data: Japan Nikkei manufacturing PMI April; Euro zone Markit manufacturing PMI April, Markit Services PMI April; UK retail sales March; US Markit manufacturing PMI April, Existing home sales March
SPI futures up 30 points (+0.5%) to 5833
AUD +0.4% to 75.23 US cents (Overnight range: 74.93-75.47)
On Wall St, Dow +0.9%; S&P 500 +0.8%, Nasaq +0.9%
In New York, BHP +1.6%, Rio +2.7%
In Europe, Stoxx 50 +0.6%, FTSE +0.1%, CAC +1.5%, DAX +0.1%
Spot gold flat at $US1280.30 an ounce
Brent crude flat at $US52.95 a barrel
Spot iron ore +1.2% to $US65.36 a tonne
Dalian iron ore +4.2% to 497 yuan
LME aluminium +2.15 to $US1942 a tonne
LME copper +1.2% to $US5623 a tonne
10-year bond yield: US 2.23%, Germany 0.24%, Australia 2.50%
What happened overnight: