Wall Street's retail stocks were boosted by expectations of record sales over the weekend. (Flickr / ArchivesACT)
Australian shares are expected to jump in early trade, following a bounce back on Wall Street after two bruising weeks.
Markets at 8:15 am (AEDT):
- ASX SPI futures + 0.8pc at 5,722, ASX 200 (Monday's close) -0.8pc at 5,672
- AUD: 72.22 US cents, 56.36 British pence, 63.72 Euro cents, 82.03 Japanese yen, $ NZ1.07
- US: Dow Jones + 1.5pc at 24,640, S & P 500 + 1.6pc at 2,673, Nasdaq + 2.1pc at 7,082
- Europe: FTSE 100 + 1.2pc at 7,036, DAX + 1.5pc at 11,355, CAC + 1pc at 4,995, Euro Stoxx 50 + 1.3pc at 3,177
- Commodities: Brent crude + 2.9pc at $ US60.53 / barrel, spot gold flat at $ US1,222.20 / ounce, iron ore -8.4pc at $ US64.25 / tonne
Meanwhile, the Australian dollar is slightly weak at 72.22 US cents, but has risen to 56.36 British pence and 63.72 cents.
President Ken Henry, National Bank of Australia, is back in the box for a second day to answer questions about banking culture at the financial services royal commission today.
He gave some very lengthy dissertations on responsibility, governance, risk taking and culture at yesterday's hearing.
Mining stocks may come under pressure after Australia's key export, iron ore, plunged 8.4 percent to a four-month low of US $ 64.25 per tonne.
Investors are becoming worried that "the upcoming winter curbs on steel mills in China will see demand impacted," said ANT foreign exchange analyst Nate Hartley.
"The concerns have been exacerbated by the fall in steel futures … impacting margins for steel mills.
"This raises the possibility that the mills may move to lower grade iron ore over the coming months."
European markets rallied overnight as worries about Brexit eased after the weekend vote in Brussels, and as investors piled back into oil and financial stocks.
On Wall Street, investors bought into beaten-down energy and financial stocks, while retailers advanced on hopes of strong sales over the weekend.
The Black Friday online sales pulled in a record $ 8.6 billion ($ US6.2b) – and 23.6 percent jump over last year, according to Adobe Analytics, which tracks transactions for 80 of the top US retailers, including Amazon.
Adobe also estimates that customers, encircled by a flurry of discounts and free shipping, also spent a record $ 10.8 billion on Cyber Monday.
These lofty expectations lifted the Amazon's share price by 5.3 percent to $ 1,581.33 at 8:15 am (AEDT), providing the biggest boost to the broader market.
The Dow Jones Index added 354 points, or 1.3 percent, to 24,640.
The S & P 500 gained 1.6 percent to 2,673, its biggest percentage gain in nearly three weeks.
Wall Street's benchmark index closed 10.2 percent below its record high on Friday, confirming a correction for the second time this year.
The Nasdaq jumped 2.1 percent to 7,082, thanks to recovery in the other "FAANG" stocks – Facebook (+ 3.5pc), Apple (+ 1.4pc), Netflix (+ 1pc) and Google (+ 2.5pc).
US markets were also boosted by energy stocks, following a bounce back in oil prices.
Brent crude oil rebounded by 2.9 per cent to $ US60.52 per barrel, though oil is still deep in bear market territory.
In the meantime, investors are looking ahead to the G20 Summit in Buenos Aires this weekend, where US and Chinese presidents, Donald Trump and Xi Jinping, are expected to meet on their two countries' escalating trade war.
ABC / Reuters