ASX 200 futures, up around 1% this morning, implied that the share market will rise today following optimism on Wall Street overnight and the Dow adding 400 points or 1.3%, the S&P 500 gaining 1.2% and the Nasdaq up 0.9%.
This follows a good day yesterday in Australia and across the Pacific, which saw the ASX gain 2%.
Investor confidence stems from a report from the US Federal Reserve indicating there is room for an easing of rate hikes in December.
The greenback continues to hold the line against other major currencies, with the Euro hovering around US$0.9770, the Aussie dollar settling at US62.70 cents and the yen down to JPY149.89 at the US close.
Elsewhere in the world, the outlook was significantly gloomier.
Data from Europe showed that manufacturing is slowing as a result of the ongoing war in Ukraine and Chinese economic data was similarly flat with major losses on Hong Kong’s main market.
Chalice passes to Sunak
The 42-year-old new UK prime minister, Rishi Sunak, who is worth $1.3 billion, or more than the new King, has an enormous task on his hands to unite his country.
The country’s first British Indian leader was the last person standing, as former prime minister Boris Johnson made it clear that he was not looking at a return, and the only other challenger, Penny Mordaunt, also withdrew.
The former investment banker made a pitch for unity: "The choice our party makes now will decide whether the next generation of British people will have more opportunities than the last," he said as he prepared for a second tilt at the leadership in as many months.
"I want to fix our economy, unite our party and deliver for our country.
"The challenges we face now are even greater. But the opportunities – if we make the right choice – are phenomenal."
Chalmers to hand down budget
The relatively new Labor Government is preparing to hand down its first budget tonight.
Recognising the global headwinds and the debt it says it has inherited, the government has been preparing the ground – in other words, setting expectations as low as possible – since it took office in May.
The good news is a $40 billion reduction in the deficit, spurred on by strong commodities prices and tax savings.
The bad news is that there is still much ground to cover, at a time when ever-climbing inflation and interest rates are starting to bite consumers and businesses.
Ahead of the big night, Chalmers said: “This government will be solid, sensible and suited to the times.
“It will recognise in a time of extreme global uncertainty our best defence is a responsible budget at home.
“It will understand that even though these economic pressures are coming from the interest world, they are felt most acutely around the kitchen table.
“Inflation will be the primary influence on the budget I hand down tonight. The budget has three objectives: responsible cost of living relief, strengthening the economy and beginning the hard yards of budget repair.”
Prime Minister Anthony Albanese said that the budget would be family-friendly and waste-averse, easing the cost of living with measures such as paid parental leave and increased childcare spending, without putting upward pressure on inflation.
In other news
Global oil prices were up again, jumping by roughly 3% overnight.
US crude inventories were down 1.725 million barrels, defying expectations for an increase of 1.38 million barrels.
Brent crude was up by US$2.38 or 2.6% to US$92.41 a barrel, while US Nymex gained US$2.73 or 3.3% to US$85.55 a barrel.
Base metal prices were mixed, with lead falling the most (-1.5%) and zinc up by roughly the same (1.6%).
Gold futures were down US$21.60 an ounce or 1.3% to US$1,634.20 an ounce, and spot gold was trading near US$1,629 an ounce at the US close.
Iron ore futures fell by 35 US cents or 0.4% to US$94.86 a tonne.