Local Markets Commentary

Australian shares are set for a strong start after Wall Street shook of Monday’s tech sector jitters overnight and the Dow Jones hit an all-time high ahead of an expected Federal Reserve interest rate hike Wednesday (US time).

SPI futures were pointing to a 0.2 per cent or 10 point higher open at 5792 points.

The ASX surged to its best daily performance in seven months yesterday, as investors flooded back into bank stocks.

Oil rebounded after dipping below $US46 a barrel as estimates that US supplies declined distracted investors from higher OPEC production.

The $A slipped to US$0.7535 overnight.

Overseas Market Commentary

The Dow Jones Industrial Average set a new intraday high overnight and the S&P 500 Index rose to within inches of a record, while the Nasdaq 100 Index bounced back from its biggest two-day drop since September.

US stocks recovered from a two-day slide and approached records as technology shares rebounded from their worst drop of the year. The dollar weakened and Treasuries were steady as the Federal Reserve policy meeting kicked off.

Drama in Washington continued to demand attention, with US Attorney General Jeff Sessions beginning his testimony to lawmakers.