ASX rises early after Wall Street gains

Shares have gained about 1.0 per cent early in trade on the Australian market after solid gains on Wall Street overnight following a rebound in US services industry activity.

The S&P/ASX200 benchmark index was higher by 58 points, or 0.96 per cent, at 6072.6 points after the first 15 minutes of trade on Tuesday.

The All Ordinaries index was 62.2 points, or 1.02 per cent higher, at 6188.1.

The positive lead comes after data for US non-manufacturing activity showed a jump in June to almost return to its pre-COVID-19 pandemic levels.

Investors also bet on an improving Chinese economy and its impact on the global growth as the yuan led commodity currencies higher against the US dollar.

All three major US indices ended between 1.6 and 2.2 per cent higher.

The gains came despite a record surge in new COVID-19 cases in 16 US states that could further hamper reopening plans and create a risk to the economic recovery.

In the local market, all industry sectors were positive, and leading the way was telecommunications, up 1.56 per cent.

Materials was faring well, higher by 1.51 per cent, and consumer discretionary, better by 1.39 per cent.

Health was the laggard, only rising 0.14 per cent.

The main event of interest will be the Reserve Bank board meeting later on Tuesday.

The central bank isn’t expected to make changes to the cash rate but economists will be watching closely to see what the central bank says about the economy, jobs and the Aussie dollar.

The Australian dollar was buying 69.78 US cents at 1015 AEST, higher from 69.72 US cents at the close of trade on Monday.

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