Positive developments in the United States which buoyed share prices in New York have provided the conditions for a strong day when trading begins on the Australian Securities Exchange (ASX) on Wednesday.
ASX market participants can expect to see their trading screens lit up with green as futures trading indicated the market benchmark would open more than 1% higher than the previous close, as market participants digested overnight events in the United States.
Stock indices closed up on Wall Street, buoyed by hopes of an easing of U.S.-China trade tensions based on comments from Treasury Secretary Scott Bessent that he expected a de-escalation of U.S.-China trade tensions.
He told journalists “no one thinks the current status quo is sustainable”.
After the market closed, stocks jumped further in extended trade after President Donald Trump said he had no plans to fire Federal Reserve Chair Jerome Powell, someone he has criticised harshly recently.
"The roller coaster continues," Carson Group Chief Market Strategist Ryan Detrick was quoted in a Reuters news report as saying.
The major stock indices finished higher with the Dow Jones Industrial Average up 2.7%, the S&P 500 gaining 2.5%, and the Nasdaq Composite rising 2.7%.
In Australia, at 9:30 am AEST (11:30 pm GMT Tuesday), the S&P/ASX 200 June share price index futures contract was 100 points (1.27%) higher than the previous settlement at 7,936.
The Australian market was little changed on Tuesday, with the index closing just 2.4 points down at 7,816.7.
Stocks in focus today will include Atlas Arteria, Insignia Financial, Paladin Energy and Woodside Energy, which are scheduled to provide quarterly updates, and Latitude Group, which holds its annual general meeting, according to CommSec.
On fixed interest markets, the Australian Government bond yield curve flattened with the 10 year rate dropping 0.47% to 4.193% at the same time as the two-year rate rose 0.99% to 3.263%.
