ASX to bounce back from biggest drop in six months; US delays tariffs on Mexican goods

US markets stem bleeding after White House delays tariffs on Mexico, Canada for one month. ASX futures point to rebound. Local household spending data due. Woolworths, Westpac announce leadership changes.

US President Donald Trump's aggressive trade moves sent markets into a tailspin on Monday. Picture: Gaye Gerard

Welcome to the Trading Day blog for Tuesday February 4. The ASX 200 is set to bounce back strongly after its biggest drop in six months following the escalation of a trade war between the US and its neighbours.

On Wall Street, markets pared back losses overnight on news the US would be putting tariffs on Mexico on hold for one month.

ASX 200 futures are 0.5 per cent higher to 8385.

On Wall Street, the S&P 500 closed 0.7 per cent lower, the technology-focused Nasdaq Composite Index shed 1.2 per cent and the Dow Jones Industrial Average finished the day's trade down 0.3 per cent.

US 10-year bond yields are lower to 4.534 per cent.

Oil prices are higher with global benchmark Brent trading at $US75.84 per barrel and WTI Nymex at $US72.93 per barrel.

Gold futures are also higher, to $US2857.55 per ounce.

Cryptocurrency market leader bitcoin is higher, now trading above $US101,000.

The Aussie dollar is trading around US62.24c.

Originally published as ASX to bounce back from biggest drop in six months; US delays tariffs on Mexican goods