Australian shares had an excellent day of trading on Tuesday, flying higher on optimism that the world might escape the coronavirus recession reasonably quickly.
The excitement of the economy opening up again around the nation and the world is feeding the jubilant mood among investors.
Some experts are theorising that the local market is playing catch-up with the rest of the world, as ASX stocks hadn’t recovered its coronavirus losses as fast as other exchanges.
What happened at lunchtime?
Australian stocks are still flying at lunchtime Tuesday as the market followed the overnight lead from the US in ignoring the recession in the real world.
The prices have settled somewhat from this morning’s early burst that saw both indices go above 3 per cent gains.
What happened this morning?
The Australian share market is going gangbusters on Tuesday morning despite overnight confirmation that the United States is in a recession.
What happened overnight?
Wall St overnight completely ignored reports the US had entered a recession, as they instead chose to focus on a surprisingly decent set of job numbers.
The outlook was so upbeat that a new bull market was declared and the S&P500 is now positive for the calendar year, after cancelling out all the coronavirus losses.
A bull market is defined as a rise of 20 per cent out of a trough.
"It's optimism surrounding the reopening of the global economy, and the likely confirmation that the US economy will experience a V-shaped recovery in the second half," CFRA Research chief investment strategist Sam Stovall told AAP.
The Dow Jones Industrial rose 1.7 per cent, the S&P500 rose 1.2 per cent, and the NASDAQ was up 1.13 per cent.
Accordingly the SPI200 futures were up 0.67 per cent at 8am AEST, indicating the ASX would likely start higher on Tuesday morning.
– with AAP