Local stocks are poised to open higher as tech stocks rebounded on Wall Street.
What you need2know:
• SPI futures up 27 points to 5431
• AUD at 93.57 US cents, 95.17 Japanese yen, 67.83 Euro cents and 55.88 British pence.
• On Wall St, S&P500 +0.4%, Dow Jones +0.1%, Nasdaq +0.8%
• In Europe, Euro Stoxx 50 -0.3%, FTSE100 -0.5%, CAC -0.3%, DAX -0.2%
• Spot gold up 0.5% to $US1310.10 an ounce
• Brent oil up 1.8% to $US107.69 per barrel
What’s on today
Australia: housing finance, consumer confidence
US: wholesale sales, Federal Reserve meeting minutes
Stocks to watch
Copper slipped from a one-week high on uncertainty about growth in China and worries that upcoming trade data may be weak.
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Deutsche Bank has a “sell” recommendation on Wesfarmers and a $38.00 a share 12-month target price on the stock after it agreed to sell its insurance broking and premium funding operations.
Morningstar raised Macmahon Holdings to “hold” from “reduce” noting that while the mining services company has benefited from robust domestic investment growth, particularly in the mining and energy sector, the mining services industry is highly cyclical, volatile and competitive.
The yen has rallied as traders dialed back bets against the currency after the Bank of Japan held off on additional monetary easing and BoJ governor Haruhiko Kuroda offered little indication more stimulus was likely in the short term.
The US dollar tumbled 1.4 per cent to a three-week low of 101.56 yen before stabilising at 101.69 in late trading in New York.
The euro pierced below its 141 yen support to 140.09 yen, its lowest in over a week. The euro zone single currency was down nearly 1 per cent at 140.28 yen in late trading.
Gold is 1 per cent higher on a sharply lower US dollar and as renewed tensions between the United States and Russia over Ukraine burnished bullion’s safe-haven appeal.
Copper slipped from a one-week high on uncertainty about growth in China and worries that upcoming trade data may be weak. Three-month copper on the London Metal Exchange closed 0.1 per cent lower at $US6671.
ICE arabica coffee is soaring, extending the large gains seen since late last week as dry weather forecasts for Brazil reignited worries over crop damage in the world’s top producer. The benchmark May arabica coffee contract on ICE Futures US was up 8.2 cents, or 4.2 per cent, at $US2.0155 cents per lb by midday in New York.
US stocks mostly rose on Tuesday, rebounding after three days of declines, as investors bought beaten-down shares of social media and Internet companies.
The day's biggest gainers included Amazon.com, Yahoo! and LinkedIn.
The eight biggest US banks must raise a total of about $US68 billion in capital by 2018 to comply with a new rule designed to prevent another financial crisis, the nation’s regulators have decided.
European shares fell for a second day on Tuesday as investors sold out of some of the year's top performing regional indexes and stocks on fears the earnings season will prove sobering.
Markets in the euro zone periphery led the losses, with Italy's FTSE MIB index down 1.5 per cent in brisk trading volumes. The Milan benchmark has strongly outperformed broad European indexes since the start of the year.
What happened yesterday
The benchmark S&P/ASX 200 Index recovered most of its early losses to finish just 3.1 points, or less than 0.1 per cent, lower at 5410.6.