The Australian sharemarket is tipped to open in the green after a renewed wave of dip buying spurred gains on Wall Street at the start of the first full trading week in 2025.
ASX 200 futures were 0.1 per cent higher at 8256 points as US stocks ended on a reasonably upbeat mood. The S&P 500 rose 0.6 per cent. The Nasdaq 100 added 0.9 per cent. The Australian sharemarket finished flat on Monday, weighed down by weaker miners. Wealth manager Insignia Financial was the major winner of the session, jumping 14.7 per cent after receiving a non-binding $2.9 billion takeover proposal from private equity firm CC Capital Partners.
Overnight, Nvidia jumped 4 per cent toward a record ahead of chief executive Jensen Huang’s speech. Banks climbed on deregulation optimism, with Michael Barr stepping down as the Federal Reserve’s vice chair for supervision. The news also fuelled a steepening of the Treasury curve, with longer maturities underperforming. The yield on 30-year bonds hit the highest since late 2023.
The sharemarket is tipped to grind higher in 2025 buoyed by hopes of an early rate cut by the RBA.Credit: Dominic Lorrimer
The Dow Jones Industrial Average was little changed. American Airlines rallied on a trio of analyst upgrades. Citigroup also jumped on a bullish call. Tencent Holdings’ depositary receipts slid as the US added company to its Chinese military blacklist.
The US dollar trimmed losses as President elect Donald Trump said his tariff plan won’t be scaled back. While equities came off session highs, a rally in tech megacaps put the S&P 500 on track for a back-to-back advance of almost 2 per cent. The Australian dollar was trading around US62.42c as at 7:30 AEDT.
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The yield on 10-year Treasuries rose two basis points to 4.62 per cent. The Bloomberg Dollar Spot Index fell 0.6 per cent. The Canadian loonie held gains as Prime Minister Justin Trudeau quit after more than nine years leading Canada. Bitcoin topped $US100,000. Oil halted a five-session rally.
Scott Rubner at Goldman Sachs Group sees signs of a short-term tactical bullish setup for US stocks, driven by institutional money flows and a lack of selling across trend-following systematic funds. At JPMorgan Chase & Co’s Andrew Tyler said while risks to the fierce rally are mounting, a bearish downturn remains “extremely unlikely” amid strong economic growth.
“The recovery we’ve seen Friday and today shows just how strong the ‘buy the dip’ mentality still is,” said Mark Hackett at Nationwide.
