Our market is heading for another solid day after yesterday’s 1.7%, 85 point surge, despite the weaker than expected trade data from China.
The US dollar sold off overnight, helping oil and gold, while the Aussie currency regained the 70 cent mark for a rise of more than one US cent in the session.
The ASX 200 futures market reckons the local market will open up more than 40 points this morning.
Oil prices were steady to slightly weaker overnight (the weaker greenback capped the losses), and the local punters will be looking for more action in oil-related shares today after the $11.6 billion paper bid for Oil Search from Woodside sparked most of yesterday’s big surge on the ASX.
Markets in Asia, Europe and the US had very good nights – China rose nearly 3%, despite a bigger than expected slide in import volumes in August, indicating a weakening in demand.
China was helped by moves to try and control wild swings in the market and more stimulus spending announced by the government yesterday.
Wall Street came back after the holiday Monday and regained the losses of last Friday.
The S&P 500 closed 48.19 points, or 2.5%, higher at 1,969.41, the Dow jumped 390.30 points, or 2.4%, to 16,492.68, and the Nasdaq Composite ended the day up 128.01 points, or 2.7% at 4,811.93.
China’s imports shrank far more than expected in August, falling for the 10th straight month, but despite that the Shanghai market ended up 2.91% after an afternoon rebound.
Iron ore prices rose 1% to a two-month high of $US57.42 a tonne on Tuesday, according to Metal Bulletin. They hit a record low of $US44.59.
In Europe, the Stoxx 600 Index rose 1.2% to close at 359.00, with Germany’s DAX 30 up 1.6% to finish at 10,271.36.
France’s CAC 30 added 1.1% to 4,598.26, while in London, the FTSE 100 closed up 1.2% at 6,146.10.
