The Australian share market is expected to open flat after US stocks gained as investor concerns about rising trade tensions between the US and China eased after President Xi Jinping promised to cut import tariffs.
At 0700 AEST on Wednesday, the Australian share price futures index was up two points, or 0.03 per cent, at at 5,841.
The Australian share market on Tuesday closed higher after the comments from President Xi gave market confidence a boost.
The benchmark S&P/ASX200 gained 48.3 points, or 0.83 per cent, to 5,857.0 points, while the broader All Ordinaries index was up 47 points, or 0.8 per cent, at 5,951.7 points.
In economics news on Wednesday, Reserve Bank of Australia Governor Philip Lowe speaks at an Australia-Israel Chamber of Commerce (WA) event in Perth.
US stocks climbed on Tuesday as investor concerns about rising trade tensions between the United States and China eased after Chinese
President Xi Jinping promised to cut import tariffs.
The technology sector, which would be particularly exposed to a negative impact from tense trade relations with China, provided the biggest boost to the S&P 500.
Xi said China will widen market access for foreign investors, a point of contention for US President Donald Trump’s administration.
His comments buoyed global markets, which have been under pressure as China and the United States threatened each other with billions of dollars in tariffs.
“With (Xi’s comments), we got the signal for ‘risk on’ in trading today,” said Mariann Montagne, portfolio manager at Gradient Investments in Arden Hills, Minnesota. “That’s why we’ve seen tech and biotech performing very strongly today.”
Facebook shares added the most gains to the S&P 500, rising 4.5 per cent after Chief Executive Mark Zuckerberg began his testimony before Congress and took questions from lawmakers. It was the biggest one-day percentage gain for the stock in nearly two years.
The Dow Jones Industrial Average rose 428.9 points, or 1.79 per cent, to 24,408, the S&P 500 gained 43.71 points, or 1.67 per cent, to 2,656.87 and the Nasdaq Composite added 143.96 points, or 2.07 per cent, to 7,094.30.
Front-month gold for April delivery inched up 0.4% to $1,342.00 a troy
A weaker dollar makes gold and other dollar-denominated commodities cheaper for overseas buyers. The WSJ Dollar Index, which tracks the dollar against a basket of 16 other currencies, was down 0.1%.
IRON ORE: $65.69 +1.37(May contract)
Oil prices rose to a two-week high amid receding U.S.-China trade tensions and rising geopolitical upheaval in the Middle East.
Light, sweet crude for May delivery rose $2.09, or 3.3%, to $65.51 a barrel on the New York Mercantile Exchange, the biggest one-day dollar gain since 2016.
The dollar edged lower, as worries over global trade ebbed after a speech by Chinese President Xi Jinping.
The WSJ Dollar Index, which measures the U.S. currency against a basket of 16 others, was recently down 0.04% at 83.80.
Speaking at an annual economic summit, Mr. Xi made no direct reference to China’s simmering trade tensions with the U.S. He pledged further economic liberalization in China and promised greater intellectual property protection, as well as increased access to China’s financial and manufacturing sectors for foreign companies.
The Australian dollar has followed US stocks higher as investor concerns about rising trade tensions between the US and China eased after President Xi Jinping promised to cut import tariffs.
At 0635 AEST on Wednesday, the local currency was worth 77.63 US cents, up from 77.36 US cents on Tuesday.
Recovering mining stocks boosted Britain’s top share index to its highest in six weeks on Tuesday, as concerns around global trade continued to ease.
The blue-chip FTSE 100 index was up one per cent at 7,266.75 points at the close, while Germany’s DAX rose 1.1 per cent, and France’s CAC 40 gained 0.8 per cent .
Miners recovered following some large losses in the previous session when stocks with exposure to Russia were hit after the United States unveiled new sanctions on Russian officials, oligarchs and their companies.
Glencore rose two per cent after the mining giant suspended a deal to swap its shares in Russian aluminium producer Rusal for Global Depository Receipts in EN+ due to the sanctions.
Asian stocks gain as Chinese President Xi Jinping’s promise to cut import tariffs eased investor concerns about a trade row.
Speaking at the Boao Forum for Asia in Hainan province, Xi vowed to open China’s economy, protect intellectual property of foreign firms and he criticised isolationism in his first public comments since the trade dispute with US President Donald Trump’s administration erupted.
Xi’s comments prompted a largely positive reaction in financial markets, which have been rattled over the past week on fears the tit-for-tat US-China tariffs will explode into a full-scale trade war in a blow to global growth.
Japan’s benchmark Nikkei 225 gained 0.5 per cent and South Korea’s Kospi added 0.3 per cent while Hong Kong’s Hang Seng added 1.65 per cent.
On Tuesday, New Zealand’s S&P/NZX 50 index rose 0.18 per cent, to 8,469.77.