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Flat ASX open tipped despite Wall St surge

The Australian stock market is tipped for a flat open despite an overnight surge on Wall Street fuelled by the potential easing of some coronavirus restrictions.

The Australian SPI 200 futures contract was up 5.0 points, or 0.09 per cent, to 5,313.0 points at 0800 AEST on Tuesday, pointing to a subdued open for local stocks.

US indices gained more than 1.0 per cent as investors looked towards several US states that are relaxing shutdown restrictions put in place to curb the spread of the COVID-19 pandemic.

IG Markets analyst Kyle Rodda said there were similar hopes among investors in Australia.

He said trading results on the ASX on Monday were generally positive and driven by hopes the economy would begin reopening.

The West Australian and Queensland governments are relaxing some restrictions on movement this week.

NAB’s poor first-half result may have blighted the financial sector on Monday but the S&P/ASX200 benchmark index still finished 78.8 points higher, or 1.5 per cent, at 5,321.4.

The All Ordinaries index rose 87.6 points, or 1.65 per cent, at 5,388.3.

Oil prices have plunged again due to lack of storage to deal with a coronavirus-induced collapse in demand.

Fewer people are driving and flying due to government-imposed restrictions.

One Australian dollar buys 64.65 US cents at 0800 AEST, up from 64.60 US cents at Monday’s close.

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