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The local stock market is expected to open moderately upward, following the Wall Street turnaround following the mid-term elections in the United States.
Markets at 8:25 am (AEDT):
- ASX SPI 200 + 0.7 pc at 5 905, ASX 200 (closing Wednesday) + 0.4 pc at 5 897
- AUD: 72.77 US cents, 55.41 British pence, 63.62 euro cents, 82.58 Japanese yen, 1.07 NZD
- United States: Dow Jones + 2.1% to 26,180, S & P 500 + 2.1% to 2,814, Nasdaq + 2.6% to 7,571
- Europe: FTSE + 1.1 pc at 7 117, DAX + 0.8 pc at 11 579, CAC + 1.2 pc at 5 138, Euro Stoxx 50 + 1.1 pc at 3 244
- Commodities: Brent -0.1pc to 72.03 USD / barrel, gold spot -0.1pc to 1 225.68 USD / ounce, iron ore -0.6pc to 75.27 USD
This was the expected result of the financial markets: Democrats in the House of Representatives and Republicans retaining a majority in the Senate.
Investors have been investing in the technology and health sectors, in particular. A divided room means that it could be more difficult for the Trump government to pass laws that tighten regulation in these two areas.
This led to a sharp rise in the Nasdaq index, very technology-driven, of 7,552, up 2.4%.
The S & P 500 benchmark added 1.9% to 2,808.
At the same time, the Dow Jones index rose 491 points, or 1.9%, to reach 26,126.
Shares in Google (+ 3.2%), Netflix (+ 4.8%) and Amazon (+ 6.3%), which were heavily sold in the past month, rose sharply overnight.
European markets were also spared by the return of some certainty and by the end of the US elections.
The main London and Paris stock indexes posted strong gains, rising respectively by 1.1% and 1.2%. The Frankfurt DAX index rose 0.8%.
While the US stock market has surged, the greenback has weakened against the major currencies day-to-day.
This led the Australian dollar to reach 72.8 US cents, its highest level in about seven weeks.
The local currency also reached 55.4 pence and 63.6 euro cents.
More soon.
Topics:
business-economics-and-finance
markets
stock market,
motto,
Australia
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