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'This is about jobs': ASX to rise ahead of historic Budget

Anastasia Santoreneos
·2-min read
ASX to rise ahead of historic Budget. Source: Getty
ASX to rise ahead of historic Budget. Source: Getty

Good morning.

Here’s Yahoo Finance’s Tuesday morning wrap.

The ASX is expected to rise at the open, with the SPI200 Futures contract 26 points higher to 5,902. It comes after the local bourse had its best session since 16 June, finishing off Monday’s session up 2.59 per cent.

In the US, stocks rose more than 1 per cent in afternoon trading as investors were optimistic about more fiscal stimulus and President Trump’s coronavirus symptoms.

The Dow Jones Industrial Average rose 369.01 points, or 1.33 per cent, to 28,051.82, the S&P 500 gained 47.85 points, or 1.43 per cent, to 3,396.29 and the Nasdaq Composite added 202.35 points, or 1.83 per cent, to 11,277.37.

Why is the stock market rallying? The US President has tested positive to Covid-19, and with his medication indicating his condition may be more serious than officials are saying, it’s hard to reconcile a surging stock market.

Here’s why experts think the market is rallying while Trump battles Covid-19.

It’s Budget day.

The Government will hand out the Federal Budget this evening. It’s tipped to be one of the most important Budgets in our lifetime - after all, it’s the Government’s plan to pull Australia out of its first recession in nearly 30 years.

Here’s what we know so far.

Tax cuts: Millions of Australians will have income tax cuts fast-tracked in a federal budget set to focus on driving business investment and job creation. Here’s how big a break you’ll score depending on your income.

Jobs: Treasurer Josh Frydenberg said the Government’s first, second and third focus in this year’s Federal Budget is to get Aussies who were out of work back into work.

“This is about jobs,” he told ABC television.

"Unemployment tends to go up the elevator and come down the stairs. We are hoping to move faster than that and that is why in this budget you'll see more economic activity as a result of our initiatives, creating more jobs."

RBA’s cash rate decision: Economists are split on whether Reserve Bank officials will cut the cash rate from 0.25 per cent on Tuesday, hours before the Budget is released.

Have a great day.

With AAP.

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