The ASX 200 is heading for a solid 20 point gain at the opening as investors on Wall Street focused again on the megatechs and companies that did well in the COVID pandemic and lockdowns earlier in the year.
The 20 point gain for the ASX on Wednesday follows the ASX 200 closing Tuesday’s session at the highest level since February 26, adding 12.7 points, or 0.2 percent, to finish at 6,687.7 points.
A rise in gold prices will help locally today, as will another gain in iron ore prices. Oil prices were all but steady and the Aussie dollar eased.
That was on an overly optimistic boost from the healthcare sector on positive COVID-19 vaccine news, while uncertainty over fresh fiscal stimulus help from Congress partially offset that positive momentum.
Investors on Wall Street ignored news that California tightened its pandemic lockdown through Christmas and the continuing surge in COVID-19 cases in the United States and Europe which went some way to counteracting that optimism that the new vaccines would change everything.
Wall Street also ignored another fall in bond yields – to 0.92% from more than 0.93% the day before and a rise in the US dollar – which in turn saw the Aussie dollar fall to around 74 US cents in early Asian dealings.
Shares in healthcare giants like Pfizer and Johnson & Johnson both saw solid gains, helping push the Dow and S&P 500 higher.
The Dow and the S&P 500 eased towards the close but Nasdaq remained firm.
The Dow rose 104.09 points, or 0.35%, to 30,178.88, the S&P 500 added 10.89 points, or 0.28%, to 3,702.25 and the Nasdaq ended up 62.83 points, or 0.50%, to 12,582.77.
Investors are closely watching whether Congress will be able to reach agreement on a long-awaited coronavirus relief bill and a $US1.4 trillion spending bill, with Friday as the deadline to avoid a government shutdown.
The Congress though will vote this week on a one-week stopgap funding bill to provide more time for lawmakers to reach a deal on both spending and pandemic relief.
President Donald Trump and his Republican supporters in Congress are not eager to help.
Oil prices were little changed on Tuesday as California tightened its pandemic lockdown through Christmas and COVID-19 cases surged in the United States and Europe, counteracting optimism that arose over vaccine advancements.
Brent crude futures settled at $US48.84 a barrel, up 5 cents while in New York West Texas Intermediate (WTI) crude futures settled 16 cents lower at $US45.60 a barrel.
Gold rose though – up 0.5% at a three-week high of $US1,874.90. The price rose to around $US1,877 an ounce in after-hours trading.
