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Australian stocks to open flat

 

The Australian share market is expected to open flat after US stocks gained as investor concerns about rising trade tensions between the US and China eased after President Xi Jinping promised to cut import tariffs.

At 0700 AEST on Wednesday, the Australian share price futures index was up two points, or 0.03 per cent, at at 5,841.

In the US, stocks were almost two per cent higher after President Xi Jinping said China will cut tariffs and widen market access for foreign investors, a point of contention for US President Donald Trump's administration.

The Australian share market on Tuesday closed higher after the comments from President Xi gave market confidence a boost.

The benchmark S&P/ASX200 gained 48.3 points, or 0.83 per cent, to 5,857.0 points, while the broader All Ordinaries index was up 47 points, or 0.8 per cent, at 5,951.7 points.

In economics news on Wednesday, Reserve Bank of Australia Governor Philip Lowe speaks at an Australia-Israel Chamber of Commerce (WA) event in Perth..

The Australian dollar on Wednesday morning is higher, in line with gains on Wall Street.

At 0700 AEST, the local currency was worth 77.61 US cents, up from 77.36 US cents on Tuesday.

CURRENCY SNAPSHOT AT 0700 AEST:

One Australian dollar buys:

* 77.61 US cents, from 77.36 on Tuesday

* 83.20 Japanese yen, from 82.90 yen

* 62.81 euro cents, from 62.82 euro cents

* 54.75 British pence, from 54.69 pence

* 105.46 NZ cents, from 105.37 cents

GOLD:

The spot price of gold in Sydney at 0700 AEST was $US1,339.31 per fine ounce, from $US1,333.09 per fine ounce on Tuesday.

BOND SNAPSHOT AT 0700 AEST:

* CGS 4.50 per cent April 2020, 2.0381pct, unchanged from Tuesday

* CGS 4.75pct April 2027, 2.6695pct, unchanged

Sydney Futures Exchange prices:

* June 2018 10-year bond futures contract was 97.295 (implying a yield of 2.705pct), from 97.285 (2.715pct) on Tuesday

* June 2018 3-year bond futures contract was 97.805 (2.195pct), from 97.820 (2.180pct).

(*Bond market closes taken at 1630 AEST previous local session; currency closes taken from 1700 AEST previous local session)