- ASX 200 index rising the coattails of Wall Street, eyes on RBA.
- Chinese bourses, with stocks in Shanghai up 2%.
Australian shares have added about 0.40% by the time of writing in a risk-on session.
Solid gains on Wall Street have propelled stocks in Asia higher, including Chinese bourses, with stocks in Shanghai up 2%.
USD/CNY slammed to 7.0002 from Mon close of 7.0194; SSEC +1.7, although the continued equity rally nullifies the slightly higher USD/CNY fixing.
All three major US indices ended between 1.6 and 2.2 per cent higher. More on this here:
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Wall Street Close: US stocks surge and Nasdaq powers to record high
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S&P 500: Futures print mild gains below 3,200 after Wall Street’s stellar performance
A rebound in US services industry activity is a plus, adding to the optimism around global markets where data is defying all of the odds stacked against a global recovery.
- US ISM non-manufacturing: Signs that the worst from the virus and lockdowns is fading – Wells Fargo
US services jumped in June to almost return to its pre-COVID-19 pandemic levels.
Investors also bet on an improving Chinese economy and its impact on the global growth as the yuan led commodity currencies higher against the US dollar.
US Covid-19 data (July 6) update: US cases rise 2.0% v 7-day avg. 1.8%
US stocks were impressive despite a record surge in new COVID-19 cases in 16 US states.
US Covid-19 data had been compiled for July 6 with US cases rising 2.0% v a 7-day average of 1.8%.
The following are a latest update of the key developments across the critical states for which are suffering the most:
- Texas Cases Rise 2.7% v 7-Day Avg. 4.0%.
- Texas Hospitalizations Rise 517 To Record 8,698.
- Florida Cases Rise 3.2% v 7-Day Avg. 5.1%.
- Arizona Cases Rise 3.4% v 7-Day Avg 4.1%
- California Cases Rise By Record 11,529.
Performing sectors
As for performers in today’s open, all industry sectors were positive to start the day.
Leading the way was telecommunications, up 1.56 per cent at the start of the day while health shares were the laggard, only rising 0.14 per cent.
Materials were higher by 1.51 per cent, and consumer discretionary, better by 1.39 per cent.
RBA on the slate
Looking ahead, the Reserve `bank of Australia is on the slate.
There are no changes expected to the cash rate but markets will be keeping a close ear to the ground for mention of the strength of the Aussie dollar, as well as their foresight for the virus spreading in a number of states leading to various border closures between states.
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