ASX tipped to open stronger as Wall Street welcomes COVID stimulus

The Australian sharemarket is tipped to open stronger, following the lead of buoyant US and European stocks overnight, as investors welcomed the passage of the long-awaited $2.3 trillion ($3.03 trillion) COVID aid bill in the US and Britain’s Brexit deal with EU.

ASX futures, up 32 points or 0.5 per cent to 6597, pointed to a positive start for the Australian market as it returns from the Christmas break. The Australian dollar is lower at US75.8c.

Markets have welcomed the passage of the long-awaited US COVID stimulus bill and Britain's Brexit deal with EU.
Markets have welcomed the passage of the long-awaited US COVID stimulus bill and Britain’s Brexit deal with EU.Credit:Louie Douvis

Investors will have plenty of good news to pick from, with US and European markets muscling into into near-record territory.

The S&P 500 Index, Dow Jones industrial average and Nasdaq Composite touched all-time highs after US President Donald Trump signed the COVID rescue package, having previously threatened to block the bill which restores unemployment benefits to millions of Americans.


The Dow Jones Industrial Average rose 235.6 points, or 0.78 per cent, to 30,435.47, the S&P 500 gained 36.57 points, or 0.99 per cent, to 3,739.63 and the Nasdaq Composite added 124.46 points, or 0.97 per cent, to 12,929.20.

Meanwhile, European indexes closed broadly higher, helped by more details about the European Union – United Kingdom trade deal as part of the UK’s exit from the trade bloc. Germany’s DAX rose 1.5 per cent, while the CAC-40 in France gained 1.2 per cent.

In commodities, crude prices dropped as the prospect of increased OPEC+ output in the face of weak demand dampened stimulus cheer.

US crude dropped 1.26 per cent to settle at $US47.62 barrel. Brent was last at $US50.92 per barrel, down 0.72 per cent on the day.

Gold reversed its early gains as the US dollar recovered its losses amid the stocks rally. Spot gold dropped 0.1 per cent to $US1,874.00 an ounce.

With AP and Reuters

Market Recap

A concise wrap of the day on the markets, breaking business news and expert opinion delivered to your inbox each afternoon. Sign up here.

Most Viewed in Business

Source: Thanks