ASX set to gain early from lockdown easing

dollar
dollar

The Australian share market is poised to rise in early trade after US investors were buoyed by the continued easing of lockdowns.

The SPI 200 futures contract was higher by 50 points, or 0.87 per cent, to 5,823.0 at 0800 AEST on Thursday, indicating gains in early trade.

Bank stocks powered the US markets’ advance, with the S&P 500 financial index leading gains among major sectors.

More US big businesses said they would reopen amid the coronavirus pandemic.

Walt Disney announced plans to reopen its Walt Disney World resort in Florida, the world’s largest theme park, in phases beginning July 11.

MGM Resorts said it would reopen its four Las Vegas casinos on June 4.

The Dow Jones Industrial Average rose 553.16 points, or 2.21 per cent, to 25,548.27, the S&P 500 gained 44.36 points, or 1.48 per cent, to 3,036.13, and the Nasdaq Composite added 72.14 points, or 0.77 per cent, to 9,412.36.

In Australia on Thursday morning, Reserve Bank Governor Philip Lowe’s will appear before the Senate Select Committee, where he will discuss the economic implications of restrictions to slow the spread of the coronavirus.

Businesses’ capital spending data from the first quarter of the year will also be published.

ANZ Bank economists expect a drop of 3.3 per cent on the previous quarter.

The benchmark S&P/ASX200 index closed Wednesday down five points, or 0.09 per cent, at 5,775 points.

The All Ordinaries also closed down five points, or 0.08 per cent, at 5,884.9 points.

One Australian dollar was buying 66.18 US cents at 0800 AEST, down from 66.44 US cents at the close of trade on Wednesday.

You have 7 articles remaining. Unlock 15 free articles a month, it’s free.