ASX to rise, Dow keeps 30,000 in sight, Tesla extends rally
Timothy Moore
Australian shares are poised to open higher with news of a third potential COVID-19 vaccine further bolstering hopes that the grim grip of the pandemic will be broken in the first half of 2021.
Markets got a further boost from reports that Janet Yellen is poised to be nominated as Treaasury Secretary in the Biden administration. Joe Biden earlier announced a slew of foreign policy and national security nominees. He hasn't yet said anything about Dr Yellen.
The appointment however signals the end of a widening disconnect between the White House and Federal Reserve under Donald Trump. He has repeatedly hammered at the Fed for not doing enough to bolster markets.
ASX futures were up 51 points or 0.8% to 6612 near 7.15am AEDT. The currency slipped 0.2 per cent; the Bloomberg spot dollar index was 0.2 per cent higher. The yield on the 10-year US note rose 3 basis points to 0.86 per cent.
The blue-chip Dow extended its earlier advance on the Yellen news. Vaccine hopes had already driven demand for economically-sensitive stocks such as energy and industrials. The rally was held back somewhat by weakness in megatechs, principally Apple.
At 3.25pm the Dow was up 344 points or 1.2 per cent to 29,608; Boeing, Chevron and Walt Disney led the advancers. A 2.6 per cent drop in Apple paced the decliners.
The VIX tumbled 2.7 per cent to 22.58.
Tesla extended its rally, rising more than 7 per cent and lifting its market cap ever closer to $US500 billion ahead of its inclusion in the S&P 500 next month.
