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A tech rally on Wall Street and positive developments towards a coronavirus vaccine point to a solid start to Australian share trade.

ASX SPI200 index futures rallied 42 points or 0.7 per cent after the Nasdaq surged 2.5 per cent and oil and base metals rallied. An open around those levels would reverse a 32-point decline yesterday on the S&P/ASX 200.

A mixed US market saw gains in Big Tech outweigh a soft night for industrials. The Nasdaq rocketed up 264 points or 2.51 per cent as Amazon staged its biggest rally in a year and a half. A broker upgrade from Goldman Sachs fuelled a 7.9 per cent advance in the online retail powerhouse. Microsoft gained 4.1 per cent, Google parent company Alphabet 3.1 per cent, Apple 2.1 per cent, Netflix 1.9 per cent and Facebook 1.4 per cent. The tech rally followed the Nasdaq’s first weekly decline in a month.

The broader S&P 500 gained 27 points or 0.84 per cent. The Dow Jones Industrial Average struggled for much of the session, falling 150 points at one stage before reversing to  close nine points or 0.03 per cent ahead. The Dow Jones Transportation Average, used by some analysts as a gauge for the health of the US economy, fell 1.57 per cent as airlines and logistics companies retreated.

Market sentiment was lifted by positive reports on competing potential vaccines for COVID-19. New data from a Pfizer-BioNTech trial showed the vaccine was safe and induced a high level of immune response in patients. A rival vaccine developed by Oxford University and AstraZeneca also showed promise and was well tolerated, according to data published in The Lancet. There are more than 150 potential vaccines in development, with  23 currently undergoing trials on humans, according to CNBC. UK company Synairgen surged 429 per cent after a trial showed its drug helped hospitalised patients avoid developing severe symptoms.

“Developments on COVID, positive or negative, have become the new risk-on/risk-off binary trigger for the market,” Joseph Sroka, chief investment officer at NovaPoint in the US, told Reuters. “A year ago it was trade.”

The market looked ahead to a new fiscal stimulus package. With a US$2 trillion package set to expire in two weeks, politicians began negotiations towards a new deal that is expected to support the economy to the tune of US$1 – 1.5 trillion.

The uneven nature of the overnight rally was underlined by the fact just three of eleven sectors advanced: consumer discretionary +3.1 per cent, tech +2.6 per cent and communication services +1.3 per cent. The energy sector slid 1.7 per cent despite a rise of 14 cents or 0.3 per cent in Brent crude to US$43.28 a barrel. Chevron declined 2.2 per cent after announcing a deal to buy Noble Energy.

Rio Tinto outperformed BHP in overseas trade. Rio Tinto gained 0.43 per cent in the US and 0.37 per cent in the UK. BHP’s US-listed stock shed 0.46 per cent and its UK-listed stock 0.08 per cent. The spot price for iron ore landed in China eased 95 cents or 0.9 per cent to US$109.50 a dry ton.

Silver claimed its highest close since 2016 and gold advanced as record rises in coronavirus cases kept havens well bid. Silver for September delivery climbed 43 cents or 2.2 per cent to US$20.19 an ounce, a level last seen in August 2016. Gold for August delivery settled $7.40 or 0.4 per cent ahead at US$1,817.40 an ounce.

Base metals overcame early weakness on the London Metal Exchange as vaccine news raised demand hopes. Benchmark copper rose 0.6 per cent to US$6,494.25 a tonne. Aluminium, tin and nickel gained 0.1 per cent, lead 1.4 per cent and zinc 0.8 per cent.

The dollar inched up 0.03 per cent to 70.15 US cents.

The Reserve Bank takes centre stage today with the release at 11.30 am EST of the minutes from this month’s policy meeting, followed by a speech on the impact of COVID-19 by RBA Governor Philip Lowe at 12.30 pm.

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