A bit of a rebound on global sharemarkets overnight, but all eyes will be on China today to see if the recovery extends to that rattled market.
Our market will start with a gain of around 27 points on the share futures contract after yesterday afternoons tentative rebound which continued into Europe and the US last night.
The Aussie dollar regained the 73 US cents level as the greenback softened and in fact was trading close to 73.50 US cents at 7.30 am.
On Wall Street US shares ended five-day of losses thanks to strong earnings and an earlier rebound in European markets.
In fact the S&P 500 had its best day in two weeks closing 1.2 per cent higher at 2093.26.
The Dow jumped 1.1% to 17,630.47, while Nasdaq added 1% to 5,089.21.
West Texas Intermediate, the US oil benchmark, rose 0.7 % to $US47.71 a barrel, but Brent crude futures fell 0.7% to $US53.08 a barrel.
US copper prices were up nearly 2.5%. Gold dipped a couple of dollars an ounce on the improved sentiment.
Spot iron ore prices rose 1.6% overnight to a month high of $US52.20 a tonne.
The rebound on Wall Street happened as the Fed started its two day meeting in Washington – it will be releasing its statement just after 4 am Thursday.
Global equities rebounded on Tuesday as the selloff in the Chinese markets slowed on Tuesday. The Shanghai market was down ‘only’ 1.7% against the 8.5% plunge on Monday.
The fall in Shanghai was after the market had fallen by as much as 5% and risen as much as 1% earlier.
The Shanghai index has shed 11% since Friday (meaning its now in a correction) and is down nearly 30% from its mid-June high.
The smaller Shenzhen Composite lost 2.2%, after falling more than 6% earlier Tuesday. The small-cap ChiNext board dropped 3.7
In Australia, the ASX200 fell around 1% in early trade, but recovered as the trading in China seesawed and then ended slightly firmer, but still down for a third day.
The ASX 200 ended down just 0.1% at 5584.7, while the All Ordinaries index ended down 0.15% at 5571.
