The ASX is heading for a strong opening today of 50 points or more if the overnight trading on the futures platform and Wall Street’s jump, are any guide.
The factors were – growing optimism about a new US COVID-19 stimulus package from Congress, the confirmation of President-elect Biden’s November 3 win, and more reports about another COVID vaccine to be approved shortly.
Markets discounted reports of a desperate last-minute attempt by Trump supporters in Congress to delay or try and upset the Congressional certification of the win.
As well the Fed started its final two-day meeting of the year with a statement due early Thursday morning and expected to be a bit more upbeat, if the current waves of the pandemic can be controlled and mass vaccinations take hold.
The ASX dipped 0.4% on Tuesday off the back of Monday’s 3.6% fall in iron ore prices, but prices steadied yesterday and the price of 62% fe fines delivered to northern China rose 70 cents to $US155.07 a tonne.
The ASX 200 closed at 6,631.3 on Tuesday and is heading for a rise of 50to 55 points, according to futures trading at 8am.
US import prices edged up a fraction because of higher oil and gas prices, but in reality they were not a concern and there’s no signs of inflationary pressures at all in the data.
Apple shares rose solidly on reports it may be making more iPhones than previously thought.
Apple is the most influential stock in the S&P 500 because of its massive size, and it rose 4.8% after a report from Japan’s Nikkei newspaper said it may produce more iPhones in the first half of 2021 than expected.
That drove much of the 1.1% gain for the S&P 500.
A solid jump in gold prices, a small rise in iron ore prices (See separate story), good Chinese economic data and higher oil prices have set up what looks like being a very positive day for the ASX and other markets across the Asian region.
On Wall Street the major markets all added more than 1% for the session.
The Dow ended up 1.16% at 30,200.50 points, a gain of more than 338 points. The S&P 500 gained 1.3% to 3,694.66. The Nasdaq jumped 1.25% to 12,595.06.
Gold jumped $US23.30 or 1.3% to settle at $US1,855.30 a rise that will please local bugs.
Oil settled at new 9 month highs with the key US marker, West Texas Intermediate around $US47.60 a barrel – up 1.35% and Brent futures trading around $US50.75.
Local energy stocks will take heart from that rise and the topping of the $US50 a barrel level by Brent.
