The Australian sharemarket is set to rise more than 1 per cent on Monday after US equities posted their strongest rally since the US presidential election and traders waited for new Chinese stimulus.
S&P/ASX 200 futures predicted the index would rise 85 points, or 1.1 per cent, and extend Friday’s 0.5 per cent gain.
News that the US would avoid a government shutdown helped buoy investor sentiment on Friday, capping another week of President Donald Trump’s on-and-off-again tariff threats that have whipsawed the market and raised fears of a recession. Traders are hoping US retail sales data on Monday night – expected to show a month-on-month increase – for reassurance on the health of the American economy.
A rebound in US technology giants helped the S&P 500 Index to jump 2.1 per cent at the end of last week, including a 5 per cent gain for Nvidia. Even Elon Musk’s Tesla managed a decent 3.8 per cent rally, although it’s still down more than 30 per cent in the year to date.
In welcome news for Australian miners, iron ore extended gains on expectations that the Chinese government would on Monday reveal consumption boosting plans intended to boost real incomes and stabilise the stock market. Iron ore rose 1.2 per cent and retook $US103 a tonne. The world’s second-largest economy will also release industrial production and retail sales data on Monday.
Gold – an asset that typically holds its value during times of markets stress – pared some gains, slipping to $US2984.16 an ounce after the rally in US equities.
Stocks to watch
In corporate news, National Australia Bank chief financial officer Nathan Goonan has resigned and will join Westpac, amid a slew of leadership changes announced at the bank.
Spartan Resources has confirmed Street Talk’s report of its merger with fellow gold miner Ramelius Resources in a deal that would value the former’s shares at an 11.3 per cent premium.
And Smartpay Holdings confirmed it has received non-binding indicative offers from at least two parties after its shares were smashed on the central bank’s decision to put debit card surcharges under the microscope.
Investment manager Navigator Global will acquire a minority stake in US private equity house 1315 Capital for $US70.5 million ($111.44 million).
Latitude Group has appointed Omni Bridgeway’s Guillaume Leger as its new chief financial officer.
And Opthea’s shares are in a trading halt prior to a company announcement about the results of Phase 3 clinical trials in a pat neovascular macular degeneration-related study.
Market highlights
ASX futures are pointing up 85 points or 1.1 per cent to 7867.
All US prices are as of 4.15pm New York time on Sunday:
- AUD +0.6% to US63.24¢
- Bitcoin -1.3% to $US83,356
- On Wall St: Dow +1.7% S&P +2.1% Nasdaq +2.6%
- VIX –2.89 to 21.77
- Gold -0.2% to $US2984.16 an ounce
- Brent oil +1% to $US70.58 a barrel
- Iron ore +1.2% to $US103.40 a tonne
- 10-year yield: US 4.31% Australia 4.42%