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Strong Wall St set to lead Aust shares up

AAP

The Australian share market looks set to open higher, taking its lead from Wall Street which has lifted for its second consecutive session.

At 0700 AEDT on Tuesday, the share price futures index was up 34 points, or 0.59 per cent, at 5,775.

Worldwide, investors brushed aside fears of rising inflation and tried to put last week's worst rout in two years past them, but some volatility still lingered.

Volatility picked up, with the major indexes on Wall Street climbing more than one per cent shortly after the open, then pared about half that advance before rebounding further.

n late afternoon trading (0723 Tuesday AEDT), the Dow Jones Industrial Average was up 2.27 per cent, at 24,740.28 and the S&P 500 was up 1.73 per cent, at 2,664.97. The Nasdaq Composite was back above 7,000 points, up 2.10 per cent at 7,018.87.

Locally, in economic news on Tuesday, Reserve Bank of Australia assistant governor (Economics) Luci Ellis is slated to speak at the ABE Forecasting conference.

The federal government's financial statements for the last six months of 2017 are due to be released, as is the Australian Bureau of Statistics' lending finance data for December.

The Anz-Roy Morgan Consumer Confidence weekly survey is also due out as is the National Australia Bank's January business confidence and conditions survey.

In equities news, GPT Group is expected to release its full-year results while Boral, Cochlear, Challenger and Transurban are slated to release half-year results.

The Australian market on Monday closed lower but did claw back some earlier losses as the Dow Jones futures index pointed to a possible positive session on US markets tonight.

The benchmark S&P/ASX200 index fell 17.3 points, or 0.3 per cent, to 5,820.7 points.

The broader All Ordinaries index was down 17.8 points, or 0.3 per cent, to 5,919.7 points.

Meanwhile, the Australian dollar has climbed firmly back above 78 US levels.

The local currency was trading at 78.42 US cents at 0700 AEDT on Tuesday, from 78.35 on Monday.

CURRENCY SNAPSHOT AT 0700 AEDT:

One Australian dollar buys:

* 78.42 US cents, from 78.35 on Monday

* 85.23 Japanese yen, from 85.16 yen

* 63.84 euro cents, from 63.79 euro cents

* 56.73 British pence, from 56.51 pence

* 108.27 NZ cents, from 107.80 cents

GOLD:

The spot price of gold in Sydney at 0700 AEDT was $US1,322.449 per fine ounce, from $US1,323.40 per fine ounce on Monday.

BOND SNAPSHOT AT 0700 AEDT:

* CGS 4.50 per cent April 2020, 1.9948pct, unchanged

* CGS 4.75pct April 2027, 2.8582pct, unchanged

Sydney Futures Exchange prices:

* March 2018 10-year bond futures contract at 97.120 (implying a yield of 2.880pct), from 97.095 (implying a yield of 2.905pct) on Monday

* March 2018 3-year bond futures contract at 97.855 (2.145pct), from 97.840 (2.160pct).

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