Australian market set to open higher

OVERSEAS markets have fallen across the board amid fading confidence that Donald Trump will deliver on his promised corporate tax reform.

AUSTRALIAN shares look set to open higher, ignoring the lead from overseas markets which have fallen across the board amid fading confidence that US president Donald Trump will get his promised corporate tax reform through Congress.

At 0700 AEDT on Tuesday, the share price futures index was up 16 points, or 0.28 per cent, at 5,752.

Major international markets have fallen in the offshore sessions, with Germany’s DAX and London’s FTSE 100 each down more than half a per cent, and Tokyo’s Nikkei 225 losing close to one-and-a-half per cent.

The markets were hit by investor fears that promised US tax cuts and corporate regulation easing will not materialise after President Trump’s much-touted healthcare reform bill failed to get the numbers in Congress. Locally, no major economic news is expected on Tuesday.

However, Roy Morgan chief executive Michele Levine will be joined by Scott Browning, an expert on the macro trends facing the automotive industry over the next decade and beyond, to present the latest State of the Nation report with a special focus on Australia’s Automotive Industry.

In equities news, Orotongroup is expected to release half-year results. The Australian market on Monday closed lower after losses among major miners offset a recovery in energy, banks and utilities, while retailer Myer soared after a late buying spree sparked takeover talk.

The benchmark S&P/ASX200 index fell 6.8 points, or 0.12 per cent, to 5,746.7 points The broader All Ordinaries index lost 6.9 points, or 0.12 per cent, to 5,789.2 points.

Meanwhile, the Australian dollar has fallen against the US dollar, despite the greenback sliding 0.4 per cent against a basket of major currencies. The local currency was trading at 76.24 US cents at 0700 AEDT on Tuesday, down from 76.33 on Monday.

CURRENCY SNAPSHOT AT 0700 AEDT

One Australian dollar buys:

* 76.24 US cents, from 76.33 on Monday

* 84.35 Japanese yen, from 84.17 yen

* 70.17 euro cents, from 70.35 cents

* 60.68 British pence, from 60.93 pence

* 108.18 New Zealand cents, from 108.24 NZ cents

(*Currency closes taken at 1700 AEDT previous local session)