Australian shares are set to open higher, bolstered by gains in New York as tech rebounded, as progress was made towards ending the US federal government shutdown.
Communication services and information technology paced 10 of the 11 S&P 500 Index industry sectors higher. Nvidia rallied 5.5 per cent near 3.20pm. Alphabet was 4 per cent higher. All seven of the megacap techs advanced.
“When it comes to technology, it doesn’t appear to us like the time has come to give up on chips and AI and instead search the desk for the abacus and the slide rule,” Oppenheimer & Co chief investment strategist John Stoltzfus said in a note. “Technology remains deeply embedded in the lives of both business and the consumer – and we’re all on the upgrade cycle whether we like it or not.”
Wedbush Securities’ Dan Ives said he expects tech stocks to rise another 8 per cent to 10 per cent before the end of the year. “We believe Nvidia’s earnings next week will be another major validation moment for the AI revolution.”
Market highlights
ASX 200 futures are pointing up 47 points or 0.5 per cent to 8895.
All US prices near 3.20pm New York time.
AUD +0.7% to US65.39¢Bitcoin +1.5% to $US106,126On Wall St: Dow +0.8% S&P +1.6% Nasdaq +2.3%VIX -1.33 to 17.75Gold +2.7% to $US4108.16 an ounceBrent oil +0.7% to $US64.06 a barrelIron ore +0.9% to $US102.15 a tonne10-year yield: US 4.11% Australia 4.39%Today’s agenda
Results expected on Tuesday include CBA and Bendigo and Adelaide Bank.
Among the annual meetings scheduled for today: Coles Group, Abacus Storage King, Cromwell Property Group, Downer EDI and Goodman Group. TPG will hold an extraordinary general meeting.
In terms of data, there will be private reports on consumer confidence as well as business confidence and conditions. Across the Tasman, fourth-quarter inflation expectations are scheduled.
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