Overseas markets up and gold surges 2.5%, but ASX futures in the red
The S&P/ASX 200 increased 112 points or nearly 2% on Tuesday to close at 6038 points.
While the IT and energy indices led the way with gains of up to 3.2%, it was a fairly strong broad-based performance with gains in excess of 2% across consumer goods, healthcare and financial related market sectors.
Despite most overseas markets finishing in the black overnight, the ASX SPI200 futures index is down 14 points to 5983 points, suggesting yesterday’s momentum is unlikely to carry over.
However, gold stocks could continue to trade strongly with the precious metal having stacked on 2.5% or US$50 per ounce to close at US$2037 per ounce.
The Asia-Pacific region generally moved in accord with the ASX with the Nikkei 225 and the Hang Seng gaining 1.7% and 2% to close at 22,573 points and 24,946 points respectively.
The gains were much more measured on the Shanghai Composite with the index only up 0.1% to 3371 points.
European markets were fairly lacklustre with the FTSE 100 relatively flat as it closed at 6036 points.
It was a similar story in France with the CAC 40 gaining 13 points to close at 4889 points.
The DAX fell into negative territory, closing down 0.4% at 12,600 points.
A rally in the oil price contributed to some strong gains in the US market, and companies such as Exxon Mobil and Chevron Corp rode the wave, helping to push the Dow up 164 points or 0.6% to 26,828 points.
The NASDAQ was a little more subdued, gaining 0.3% to close at 10,941 points.
The S&P 500 closed at 3306 points, up 0.4%.
Aside from oil where the Brent Crude Oil Continuous Contract closed above US$44 per barrel, it was gold once again that shone brightest on the commodities front, making a sustained run throughout the day from less than US$2000 per ounce to close at an all-time high of US$2037 per ounce.
Iron ore continued its rally, gaining 1.6% as it closed in on US$118 per tonne.
There was little movement in base metals prices.
The Australian dollar strengthened slightly and is now fetching US$0.716.
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