Global sharemarkets did well on Monday with an easing in the tensions in Trump’s trade wars and growing expectations of a rate cut later this year in the US.
As a result, the ASX should start with a solid gain Tuesday morning after trading on the overnight futures market on Monday added 25 points.
Wall Street saw the Dow end up 78.74 points, or 0.3%, at 26,062.68, marking its longest winning streak in 13 months. The S&P 500 added 13.39 points, or 0.5%, to 2,886.73, and the Nasdaq jumped 81.07 points, or 1.1%, to 7,823.17 as those fears about the regulators cracking down on megatechs eased.
Also boosting the Dow was the weekend announcement of a US defence merger with United Technologies Corp agreeing to combine its aerospace business with defense contractor Raytheon Co to create a new company worth about $US121 billion.
That sparked interest in other big industrials with defence arms – especially troubled Boeing with its broken aircraft making business thanks to the problems with its new 737 Maxx aircraft.
Monday’s gains came after US shares rose 4.4% last week, Eurozone shares gained 2.5% and Japanese shares rose 1.4%. Chinese shares lost 2.1%. and the Australian share market rose 0.7% getting a modest boost from the RBA cutting rates.
The STOXX 600 index in Europe was up 0.21%, MSCI’s gauge of stocks across the globe rose 0.67% and emerging market stocks rose 1.51%.
The US 10 year US treasury bond yield jumped to more than 2.14% on the easing worries, from around 2.084% on Friday.
The US dollar rose and the Aussie dollar slipped to around 69.70 US cents.
Oil and gold fell, but iron ore and copper rose.
