Setting daily records is becoming a pattern for the Australian Securities Exchange (ASX) as trade war concerns ease with another high expected on Thursday.
Although Wall Street ended down overnight, futures trading indicated the Australian market would open up 0.2% with the S&P/ASX 200 June share price index contract quoted 17 points above its previous settlement at 8,619 at the time of writing.
A stronger start would push the ASX price barometer above the 8,592.1 record close reached on Wednesday.
United States stock indices finished mainly weaker on Wednesday (Thursday AEST) as investors were worried by an increase in Middle East tensions, which had overshadowed good news on the inflation and trade fronts.
The S&P 500 dropped 0.3%, the Nasdaq Composite lost 0.5% while the Dow Jones Industrial Average finished square.
Reports the United States was preparing a partial evacuation of its Iraqi embassy erased gains prompted by data showing consumer prices increased only marginally in May and news U.S. and Chinese officials had agreed on a preliminary trade framework in London.
Chief CommSec Economist Ryan Felsman said Australian share prices were set to open higher, driven by probable gains in mining, gold and energy stocks on the back of higher commodity prices overnight.
He said trading in the United States was mixed with investors cheered by the trade breakthrough and softer inflation data but unnerved by the Iraqi embassy evacuation.
A sell-off in risk assets weighed on the U.S. share market, which ended modestly down.
“There was a lot of moving parts last night when it came to the market but our market is expected to reset record highs, broadly on the back of the lift in commodity prices,” Felsman said.
Eyes today will be on energy, gold and iron ore companies which should rise as a result of higher crude oil and underlying commodity prices.
In the fixed interest markets, the yield curve for Australian Government bonds steepened with yields rising 0.05% to 4.25% on 10-year paper and falling 0.24% to 3.327%.
