Investing.com - Australian shares opened 0.5% higher on Tuesday, tracking a late rally in New York after the US Treasury unexpectedly reduced its borrowing estimate for the current quarter. The S&P 500 concluded its trading session at a record high, marking its sixth record close in the past seven trading days.
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The US Treasury anticipates borrowing $US760 billion ($1.15 trillion) in privately-held net marketable debt, assuming an end-of-March cash balance of $US750 billion. This borrowing estimate is $US55 billion lower than the figure announced in October 2023, primarily due to higher projected net fiscal flows and a larger beginning-of-quarter cash balance.
The Federal Reserve is set to deliver its interest rate decision and statement at 6 am AEDT Thursday.
The Nasdaq Composite surged 1.1%, the S&P 500 set new intraday and closing records, and the Dow Jones rose 0.6%.
Oil prices softened, with Brent crude trading below $US83 a barrel and US oil below $US77 a barrel, as attention turns to the US response to an attack on a military base in Jordan by Iran-linked militants.
Brazil's Vale, the world's second-largest iron ore supplier, reported a larger-than-expected increase in production last quarter, which may put downward pressure on steel prices, according to Bloomberg.
In corporate news, AP Eagers Ltd (ASX:APE), Atlas Arteria (ASX:ALX), and Megaport Ltd (ASX:MP1) are all set to release sales updates, while Nickel Mines Ltd (ASX:NIC), Sandfire Resources NL (ASX:SFR), and Vulcan Energy Resources Ltd (ASX:VUL) will issue production results.
Market highlights include ASX 200 Futures up 0.5% to 7580, AUD up 0.5% to 66.10 US cents, and Bitcoin up 3.1% to $US43,230.
In other news, Microsoft Corporation (NASDAQ:MSFT) and Alphabet Inc (NASDAQ:GOOGL) are set to report earnings after Tuesday's closing bell in New York, and Amazon.com Inc (NASDAQ:AMZN) has abandoned its proposed $US1.4 billion acquisition of iRobot due to regulatory hurdles in the European Union.
The agenda for today includes the release of December retail sales data at 11.30 am AEDT, and overseas data such as Eurozone consumer and economic confidence, UK January nationwide house prices, and US November FHFA house prices and S&P CoreLogic