ASX to gain after Wall St ends higher

The Australian share market is set to start higher after after a positive lead from Wall Street where investors bet on technology stocks due to report earnings this week.

The Australian SPI 200 futures contract was higher by 26.0 points, or 0.43 per cent, to 6034.0 points at 0800 AEST on Tuesday.

In the US overnight, shares in Apple, Amazon.com, Facebook and Alphabet saw strong gains, which boosted markets.

Investors also weighed progress in US government stimulus efforts against rising Covid-19 cases in the country, with Senate Republicans racing to complete details of a US$1 trillion coronavirus aid proposal.

The Dow Jones Industrial Average rose 0.43 per cent to 26,584.77, the S&P 500 gained 0.74 per cent, to 3,239.41 while the Nasdaq Composite added 1.67 per cent to 10,536.27.

Gold prices climbed as high as US$1,941.90, while Brent crude oil rose 7 US cents to US$43.41 dollars a barrel.

In Australia, investors will continue to monitor the coronavirus situation in Victoria after the state on Monday posted a record 532 new cases and six more deaths.

The market will also be watching weekly payroll data for an indication on whether the unemployment rate has been easing.

Meanwhile, the Australian dollar was buying 71.47 US cents at 0800 AEST, up from 71.32 US cents at Monday’s close.

The greenback has fallen against most currencies, which BK Asset Management’s Kathy Lien attributed to the the prospect of double digit declines in GDP growth in the US.

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