Local investors could see the Australian market open flat for a change despite a huge surge on Wall Street on US President Donald Trump’s big economic stimulus plans.
The SPI200 futures contract was down just seven points, or 0.13 per cent, at 5275 points at 0800 AEDT on Wednesday, suggesting Australia’s volatile market might open flat.
The futures market has not been a reliable indicator during the past few turbulent weeks of mostly panic selling.
The highly volatile local market had its best day ever on Tuesday, gaining 5.8 per cent, after its worst day ever on Monday, falling 9.7 per cent.
Massive government stimulus plans helped lift sentiment in European and US equity markets overnight, which could spur more buying on the ASX.
Local investors are also waiting to hear about Australian measures to ease economic pain from the coronavirus.
Prime Minister Scott Morrison led a meeting of national cabinet on Tuesday evening, with a number of announcements set for mid-morning on Wednesday.
Australia’s ailing airlines will be handed a $715 million federal government lifeline to help the sector through the coronavirus pandemic.
Regional carrier Rex has been urging government action, warning it could go under unless given help during the tumultuous period.
Its shares entered a trading halt on Tuesday pending an announcement to the market.
Ardent Leisure is also in a trading halt pending an announcement.
Also on Wednesday data will be released giving a preliminary estimate for Australian retail turnover for February.
The Reserve Bank of Australia is expected to take further measures to protect the economy on Thursday.
The Aussie dollar meanwhile was buying 59.98 US cents at 0800 on Wednesday from 60.86 US cents as the market closed on Tuesday.
AAP
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