ASX to rise after stocks gain globally

Shares are set to rise in early trade on the ASX after improved business confidence and easing of restrictions in Japan and Spain helped boost global stocks.

The SPI 200 futures contract was higher by 47 points, or 0.84 per cent, to 5,673.0 at 0800 AEST on Tuesday, indicating a positive start.

Financial markets were closed on Monday in Singapore, Britain and the United States for public holidays.

Germany’s Ifo institute survey for May showed business morale rebounded in May after its worst decline on record in April.

More optimism came from Japan and Spain. Japanese Prime Minister Shinzo Abe lifted the state of emergency for Tokyo and four remaining areas while the government is also considering fresh stimulus worth 100 trillion yen (US$930 billion).

Spain also announced it will lift a quarantine requirement on overseas visitors from July 1, which may help its tourism sector.

The MSCI’s gauge of world stocks gained 0.4 per cent, nearing a 2-1/2 month high. The pan-European STOXX 600 index rose 1.2 per cent.

In Australia, Prime Minister Scott Morrison will speak at the National Press Club in Canberra and discuss new initiatives to education and training that will help the economy recover from the coronavirus crisis.

Coca Cola Amatil will hold its annual general meeting.

The Australian dollar was buying 65.41 US cents at 0800 AEST, higher from 65.24 US cents at the close of trade on Friday.

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