Australian equities are likely to start the day higher following the gains in global markets, and based on expectations, the Reserve Bank will not announce any policy changes today.
ASX futures were up 11 points (+ 0.2%) by 7:00 AEST.
The Australian dollar rose to 77.64 US cents (up 0.6 percent).
The RBA will hold its monthly policy meeting today, and virtually all economists say the bank will keep interest rates at a record low of 0.1%.
Spot gold prices rose 1.40% (to $ 1,792.36 per ounce), while Brent crude prices rose 1.2 percent (to $ 67.55 per barrel).
American incomes “crush” expectations
On Wall Street, the Dow Jones closed 0.7% higher (34,133 points) and the S&P 500 rose 0.3% (to 4,193 points).
The high-tech Nasdaq Composite fell 0.5% to 13,895.
The downturn in high-tech stocks and related stocks, including Amazon, Tesla, Facebook and Microsoft, eased, despite broadly optimistic results.
“All those names that are making huge profits today are the result of economic optimism reopening and people leaving their homes to spend money on things,” said Michael James, managing director of equity trading at Wedbush Securities.
Strong quarterly earnings, improved economic data, fiscal stimulus, and a highly flexible US Federal Reserve boosted the markets, pushing the S&P and Nasdaq to record levels last week.
More than half of the S&P 500 have reported so far, and earnings in the March quarter are up 46% (up from 24% growth forecasts in early April, according to IBES data from Refinitiv).
About 87% of companies also reported earnings per share, ahead of analyst estimates.
“This is the fourth consecutive quarter that we have received absolutely crushing ratings,” said Ross Mayfield, investment strategy analyst at Baird.
ABC / Reuters