Australian shares are set to rise after US stocks rallied to all time highs on Monday before finishing the session well off the highs of the day. U.S. stocks were boosted after the U.S. and China agreed to a trade truce as the countries look to resume trade talks and work towards a deal. Shares in chipmakers surged after President Donald Trump agreed to ease a ban on American companies supplying Chinese tech giant Huawei.
Meantime, the price of iron ore has continued its stellar rise. Oil was also higher after OPEC said it would extend production cuts for the next nine months.
Local investors are awaiting the RBA's rate call later today, consensus is that the Board will cut the cash rate by a further 25 basis points to 1.00 per cent Local economic news
Wall Street closed higher: The Dow Jones Industrial Average added 0.4 per cent to close at 26,717, the S&P 500 gained 0.8 per cent to close at 2964 and the NASDAQ rose 1.1 per cent to 8091.
European markets closed higher London’s FTSE added 1 per cent, Paris gained 0.5 per cent and Frankfurt was up 1 per cent.
Asian markets closed higher: Tokyo’s Nikkei gained 2.1 per cent, Hong Kong’s Hang Seng was closed while China’s Shanghai Composite rose 2.2 per cent.
Returning home, the SPI futures are pointing to a gain of 21 points. Yesterday, the Australian share market closed 29 points (0.4 per cent) higher at 6648.
Real estate investor and manager Cromwell Property Group (ASX:CMW) has exchanged contracts to sell its 50 per cent interest in Northpoint Tower for $300 million to Early Light International, who will acquire a full ownership interest in the building. Cromwell’s sale of its remaining interest in Northpoint, alongside its recent successful $375 million institutional placement and new three-year €225 million syndicated facility will provide certainty of funding for over $1.0 billion of acquisition opportunities that are in either exclusive due diligence or advanced negotiations as well as over $1.0 billion of value-add development opportunities. Shares in Cromwell Property Group (ASX:CMW) closed 1.7 per cent higher $1.18.
One Australian Dollar at 7:40 AM was buying 69.67 US cents, 55.12 Pence Sterling, 75.55 Yen and 61.73 Euro cents.
Iron Ore futures suggest a 3.9 per cent gain.
Gold has lost $26.70 to US$1387 an ounce.
Silver dropped 17 cents to US$15.18 an ounce.
Oil has gained $0.72 to US$59.19 a barrel.