ASX soars, pumped by coronavirus recovery
Share traders in Australia had a great Tuesday, with the local market making big gains.
At the close of trading, the ASX200 index was up a stunning 2.93 per cent, to reach 5,780.00 points.
The All Ordinaries was up 2.79 per cent, ending the day at 5,889.90 points.
That makes it the best day of trading for seven weeks, and the highest the market has been for 11 weeks.
The buying frenzy was triggered by positivity arising from coronavirus restrictions starting to lift around the world.
Locally, Prime Minister Scott Morrison on Tuesday afternoon revealed his plans to bring together employee and employer representatives to brainstorm industrial relations solutions to lead the country out of the virus malaise.
Critics of the proposal have labelled it “WorkChoices 2.0”, in a reference to the reform program that booted John Howard out of office in 2007.
What happened at lunchtime?
Australian shares are flying at lunchtime Tuesday as optimism about a recovery from the coronavirus crisis took over.
The benchmark ASX200 index had soared 1.82 per cent by 12:03pm AEST, to hit 5,718.20 points. The broader All Ordinaries also rose 1.8 per cent at the same time, reaching 5,833.10 points.
This is despite local expectations that the prime minister would announce Tuesday the Australian government’s temporary financial assistance would not be extended.
What happened this morning?
The Australian stock market edged higher on early Tuesday morning trade, buoyed by withdrawal of economic and social restrictions.
The All Ordinaries nudged up 0.7 per cent while the ASX200 index rose 0.68 per cent in the first 23 minutes of trade.
The local market will on Tuesday monitor Prime Minister Scott Morrison's speech at lunchtime, where he's expected to comment on the future of temporary government welfare and training for the jobless.
What happened overnight?
While share markets were closed overnight in the US, UK and Singapore due to public holidays, the rest of the world lifted 0.4 per cent, according to the MSCI index. Europe's STOXX600 lifted 1.2 per cent.
There was much optimism in Japan and Spain, where governments announced lifting of coronavirus-induced restrictions.
The SPI200 futures responded accordingly, up 0.84 per cent at 8am AEST to point to a higher open on the ASX on Tuesday.
– with AAP
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