Australian market set to open higher

THE Australian market looks set to open higher, following the trend of overseas indexes with investor risk appetite returning.

THE Australian market looks set to open higher, following the trend of overseas indexes with investor risk appetite returning on US President Donald Trump’s talk of tax cuts and regulatory reform.

At 0700 AEDT on Tuesday, the share price futures index was up 20 points at 5,733.

In the US, the benchmark S&P 500’s market capitalisation topped $20 trillion as investors bet tax cuts promised by President Trump would boost the economy. Trump vowed last Thursday to make a major tax announcement over the next few weeks, adding fuel to a rally that had stalled amid worries about the potential impact of his protectionist trade stance and a lack of clarity about other policy reforms.

The S&P 500 was up 0.56 per cent at 2,329.10 at 2.49pm EST (0629 Tuesday AEDT). The Dow Jones Industrial Average was up 0.75 per cent and the Nasdaq had gained 0.53 per cent.

Locally, in economic news on Tuesday, the Australian Bureau of Statistics releases December lending finance data.

In equities news, GPT Group, Cochlear, Ridley, SeaLink Challenger, Treaury Wine Estates and Folkstone are slated to post results.

The Australian market on Monday rose 0.7 per cent as encouraging company earnings reports and higher commodity prices helped it lift to its best close in a month.

The benchmark S&P/ASX200 index gained 40.1 points, or 0.7 per cent, at 5,760.7 points.

The broader All Ordinaries index was up 41.3 points, or 0.72 per cent, at 5,812.9 points.

Meanwhile, the Australian dollar has fallen against its US counterpart. The local currency was trading at 76.44 US cents at 0700 AEDT on Tuesday, from 76.67 on Monday.

CURRENCY SNAPSHOT AT 0700 AEDT:

One Australian dollar buys:

* 76.44 US cents, from 76.67on Monday

* 86.87 Japanese yen, from 87.19 yen

* 72.13 euro cents, from 72.15 cents

* 61.02 British pence, from 61.34 pence

* 106.54 New Zealand cents, from 106.42 NZ cents

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