Positive US lead may boost Asian shares

<p>Asian stocks are expected to open higher today on positive offshore leads. The Dow Jones Industrial average finished 1.5% higher at its close, the S&P500 […]</p>

Asian stocks are expected to open higher today on positive offshore leads. The Dow Jones Industrial average finished 1.5% higher at its close, the S&P500 similarly 1.6% higher.

The wave of optimism around U.S. stocks as the presidential campaign ramps up will no doubt spill over into the Asian region.

The Australian dollar – a key barometer for regional risk appetite – looks strong at around 103.7 US cents where it last traded, well above the parity level it tested several times late last year.

In commodities, copper has managed to claw back its recent losses to last settle at US$3.52/lb. The US$3.30 support level seems to have held quiet convincingly and like the Australian dollar now looks to be set for a period of mild range trading.

Gold jumped back above US$106/oz on renewed Middle East tension, as did Brent Crude futures, last up around US$5 to US$112.38 per barrel.

In regional corporate news, Sinopec has agreed to pay around US$900m for an interest in five Devon Energy exploration projects in the US. Sinopec will also pick up around $1.6bn in future drilling costs which will go a long way in funding around 125 wells over the next year. The acquisition and cash injection highlights the importance of energy diversity and security as China and India put together long term industrialisation plans.

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.