All three major US indices hit all-time highs overnight. The Dow Jones index gained 0.7% to close above 44,000 points for the first time, while the S&P 500 set a fresh record close above 6,000 led by Financials, while the tech-focused Nasdaq closed flat as megacap stocks weighed.
The small-cap Russell 2000 index jumped 1.5% to its highest level since 2021 and was near a record high.
European markets closed higher, logging their best day in six weeks, with defence stocks in the lead on prospects of higher military spending in Europe under a Donald Trump US presidency.
After losing 0.35% yesterday, the local market is expected to open slightly higher this morning based on ASX SPI 200 Futures trading up 5 points (0.06%) to 8,291.
The CBA Household Spending Insights (HSI) report is released today with business and consumer confidence surveys.
Also today are the earnings release of Piedmont Lithium (ASX:NASDAQ:PLL, OTC:PLLTL), while Coles, Lifestyle Communities, Nanosonics, Platinum Asset Management and PointsBet all host AGMs.
The Senate's Rural and Regional Affairs and Transport Legislation Committee is holding a public hearing in Canberra today looking at a bill to break up Qantas and Virgin’s dominance for slots at Sydney Airport.
Smaller airlines argue that the two big airlines’ 'slot hoarding' makes it almost impossible to compete on flights in and out of Sydney.
The committee is first hearing from Qantas this morning, while Virgin won't be showing up.
"We want to thank Qantas for actually showing up," Senator Bridget Mckenzie said.
This comes as the Federal Government announced it is giving failed carrier Regional Express (REX) a $80 million lifeline after the carrier fell into administration this year.
Currencies
The Australian dollar is down 0.20% at 65.71 US cents.
The Euro dropped to its lowest level since May, falling 0.7% to $1.0641, while the pound lost 0.46% to $1.2862
Bitcoin has broken through $83,000 for the first time on expectations that Trump’s return to the White House will favour cryptocurrencies despite previously stating that bitcoin is a “scam against the dollar”. The Bitcoin price has now more than doubled from $37,000 a year ago.
Commodities
Commodity prices continue to dwindle after China's disappointing stimulus announcement last Friday.
Iron ore futures dipped US72 cents or 0.7% to US$103.10 a tonne on Monday left investors disappointed while an expansion in Chinese port stockpiles highlighted ample supplies.
Base metal prices retreated on Monday as the US dollar gained strength on growing anxiety about future US trade policy under Trump and demand prospects from top consumer China remained weak.
- Copper futures slid 1.8%
- Aluminium futures shed 2.3%
Global oil prices fell by more than US$2 a barrel on Monday after China's stimulus plan disappointed investors seeking fuel demand growth in the world's second-biggest oil consumer and as the US dollar edged higher.
- The Brent crude price fell US$2.04 or 2.8% to US$71.83 a barrel.
- The US Nymex crude price lost US$2.34 or 3.3% to just over US$68 a barrel.
Gold prices took a hit after Trump's victory prompted massive outflows from gold-backed ETFs. The largest gold ETF — the SPDR Gold Shares (NYSE:GLD) ETF — recorded its biggest weekly outflow in more than two years of over US$1 billion.
- Gold futures are down near US$2,626 per ounce, weighed down by a rising US dollar.
- Spot gold was trading near US$2,622 an ounce at the US close.
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