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ASX set to rise ahead of US Election race, Wall Street surge

Jessica Yun
·2-min read
A pedestrian walks past the New York Stock Exchange in New York, the United States, Oct. 30, 2020
A pedestrian walks past the New York Stock Exchange in New York, the United States, Oct. 30, 2020. (Photo by Wang Ying/Xinhua via Getty Images)

Good morning.

Here’s Yahoo Finance’s Wednesday morning wrap:

ASX: The Australian share market is expected to rise at the open morning ahead as investors await the outcome of the US Election. The benchmark ASX200 closed up nearly 2 per cent higher yesterday.

Wall Street was jubilant overnight as investors bet on a clear Joe Biden victory and a swift deal on more fiscal stimulus. At the time of writing, all three major US stocks were up more than 2 per cent.

In non-US Election news...

Yesterday’s RBA rate cut, along with income tax cuts and rising consumer confidence, is expected to boost retail spending. Should the rate cut be passed, Aussies stand to save around $33 a month on an average $400,000 loan for an owner occupier paying principal and interest. (Yahoo Finance broke down what the cut means for your personal savings.) Encouragingly, the Treasurer has asked banks to pass the cuts on. The ABS will release final retail spending figures for September today.

But economic recovery will require business investment. That’s the message of a report from Deloitte Access Economics, which has said a vicious circle could be created where scared investors aren’t investing; the economy won’t grow without investment; and jobs won’t be created.

“It won't really be a recovery until businesses are willing to bet on the future by expanding their productive capacity,” said Deloitte partner Stephen Smith.

The Australian market is at a turning point. But what are the signs? Property expert and Yahoo Finance contributor Michael Yardney breaks it down – and why now is the time to buy.

Clive Palmer is battling the High Court over Western Australia’s border closure. Palmer's legal team on Tuesday argued the closure had overreached, limiting freedom of movement allowed under s92 of the constitution. Here’s more on that.

China has struck another blow against Australian exports. This time its target is timber and barley. Here’s the latest.

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