ASX set to follow Wall Street higher; Commodities rise

Good morning, and welcome to Markets Live. Guiding you through today’s session is Alex Druce.

We’re set for early gains after a strong overnight session on Wall Street, where bargain hunters gave the downtrodden energy and financial sectors a bit of love.

Commodity prices edged higher overnight, with gains for gold, oil and iron ore.

This blog is not intended as financial advice

Telstra is about to launch a 5G fixed-wireless product to directly compete against the NBN, getting the ball rolling on selectively using its 5G mobile network to try and steal customers away from the $57 billion fixed-line network.

With Telstra and its peers locked in a tussle with NBN Co over the high wholesale prices charged by the company in charge of the national broadband network, the launch of the “5G Home Internet” product sets the scene for Telstra to keep more money in its pocket by bypassing the NBN.

Telstra chief executive Andrew Penn will hope the service will attract customers struggling with poor NBN reception and download speeds.Credit:Tash Sorensen

The telcos can avoid paying the wholesale price to NBN by connecting a home directly to their 5G fixed-wireless services, which offer high-speed plans at prices comparable to existing NBN plans.

The 5G service, to be launched on Wednesday, is priced at $85 a month and will offer 500GB of data to eligible customers. Telstra said it expects customers to achieve typical download speeds between 50Mbps and 300Mbps.

Full story here

ASX futures up 38 points, or 0.6 per cent, to 5982 at 8.30am AEST

  • AUD at 70.75 US cents
  • Wall Street: Dow +1.5%, S&P500 +1.6%, Nasdaq +1.9%
  • Spot gold +1.1% to $US1881.77 an ounce
  • Brent crude +1.2% to $US42.43 a barrel
  • US oil +0.8% to $US40.58 a barrel
  • Iron ore +0.8% at $US116.15 a tonne
  • 10-year yield: US 0.66% Australia 0.77% Germany -0.53%

Wall Street rallied to close sharply higher overnight as investors sought bargains among sectors hardest-hit by the coronavirus recession, now limping toward its ninth month.

All three major US stock indexes made solid gains on the heels of the longest weekly losing streak in over a year for both the S&P 500 and the Dow.

Wall Street surged overnight. Credit:AP

But energy and financials, which suffered the most bruising blows from the economic shutdown, enjoyed the largest percentage gains among major S&P 500 sectors, all of which ended the session in the black.

“Today’s market is being led by energy and financials, but it’s a very well-balanced market,” said Tim Ghriskey, chief investment strategist at Inverness Counsel in New York. “Every sector is participating in this rally.”

However, even with Monday’s jump, the indexes are only days away from closing the books on their first monthly declines since March, when markets were sent into a freefall by pandemic-related lockdowns.

“Given that it’s been a weak month, some rebalancing may be occurring,” Ghriskey added. “The rebalancing would move allocations to equities and some of that may be happening today.”

The third quarter also draws to a close on Wednesday, and despite September’s expected loss, the S&P and the Nasdaq are on course for their best two-quarter winning streaks since 2009 and 2000, respectively.

Market leaders Apple Inc and Amazon.com once again gave the biggest boost to the S&P 500 and the Nasdaq.

The lack of a COVID-19 vaccine and an additional fiscal stimulus package from Washington have weighed on the markets in recent sessions.

But US House of Representatives Speaker Nancy Pelosi said in an MSNBC interview that stimulus talks with Treasury Secretary Steven Mnuchin are due to continue on Monday, suggesting a possible progress to end the stalemate.

“I’m not sure there’s any chance of it happening before the end of the year but it’s in the news and giving some traders some confidence,” said Ghriskey.

The Dow Jones Industrial Average rose 410.1 points, or 1.51 per cent, to 27,584.06, the S&P 500 gained 53.14 points, or 1.61 per cent, to 3,351.6 and the Nasdaq Composite added 203.96 points, or 1.87 per cent, to 11,117.53.

Reuters

Good morning, and welcome to Markets Live. Guiding you through today’s session is Alex Druce.

We’re set for early gains after a strong overnight session on Wall Street, where bargain hunters gave the downtrodden energy and financial sectors a bit of love.

Commodity prices edged higher overnight, with gains for gold, oil and iron ore.

This blog is not intended as financial advice