ASX to jump on last day of financial year as Wall Street rebounds

Australian shares are likely to recoup some of yesterday’s heavy losses on Tuesday morning, as the turbulent financial year draws to a close.

ASX futures were up 71 points (or 1.2 per cent) by 7:15am AEST.

The Australian dollar was steady at 68.6 US cents.

It follows a rebound on Wall Street as investors put aside fears of a deeper-than-feared US recession, and raised their expectations of further stimulus from Congress or the Federal Reserve.

The Dow Jones index jumped 580 points (or 2.3 per cent) to close at 25,596.

The benchmark S&P 500 and tech-heavy Nasdaq lifted by 1.5 and 1.2 per cent respectively.

A spike in coronavirus infections in southern and western states in the US last week sent the S&P down nearly 3 per cent.

US markets were boosted overnight by figures showing the US property market was starting to rebound.

Pending home sales jumped by a record 44.3 per cent in May, according to the National Association of Realtors. It tracks how many contracts to buy an existing home were signed.

However, they are still below where they were in February, before the coronavirus led to forced business closures, grounding the American economy to a halt.

It was also a strong trading day for Europe, with Britain’s FTSE and Germany’s DAX rising by at least 1.1 per cent each.

Spot gold was flat at $US1,771.49 an ounce, near its highest value in seven and a half years.

Brent Crude oil jumped (+1.6pc) to $US41.67 per barrel.

More to come.