Australian stocks are set to rally slightly this morning despite a mixed start to the week on Wall Street.
- ASX will rise slightly at the opening
- US stocks generally fell slightly on Monday, but the Nasdaq rose.
- G7 tax decision did not lead to lower prices for shares of tech giants
At 7:15 am AEST, ASX 200 futures were up 0.1%.
The ASX 200 fell 0.2% yesterday.
On Wall Street, stocks fell mostly, but only marginally, with the Dow and S&P 500 losing ground, while biotech helped lift the Nasdaq.
Market ignores minimum corporate tax announcement
US stocks have not seen much change despite the G7’s announcement over the weekend that it agreed to maintain a minimum global corporate tax rate of at least 15 percent.
Treasury Secretary Janet Yellen even went so far as to call the proposal a “significant, unprecedented commitment” to end what she called a race to the bottom in global taxation.
Facebook said it will pay more taxes globally as part of the deal. Many other big techies on Wall Street may face the same outcome.
“Attempts by journalists to advertise the significance of the ‘historic’ G7 deal over the weekend did not match the dynamics of stock prices,” analysts at NAB said this morning.
“And where the NASDAQ just finished 0.5% gain versus small losses for the S&P and Dow.”
Analysts noted that the tax policy was noted two weeks ago, which may have absorbed the blow.
Aussie rises after confirming AAA rating
The Australian dollar rose slightly against the US dollar at 77.60 US cents.
Yesterday, credit agency S&P Global Ratings canceled the negative outlook on Australia’s sovereign credit rating AAA due to the fact that the economy during the COVID pandemic turned out to be much better than expected.
“We continue to support the strengthening of the Australian dollar as its fundamentals are strengthening,” Central Bank analysts said this morning.
“We expect the Australian dollar to rise if the RBA reduces asset purchases and continues to target bonds in April 2024 at its July 6 meeting.”
NAB’s monthly Australian Confidence Survey comes out today and will reflect business sentiment as the federal budget is released in May.
ABC / wires