The Australian equity market is set to open higher after the European Central Bank cut its office interest rate by 25 basis points to 1.25%. Reports out of Greece also suggested that the potential referendum, which took investors by surprise earlier in the week, would be abandoned. Those reports and the interest rate cut sent stock markets on both sides of the Atlantic higher.
The Dow gained 208.43 points or 1.76% to close the session at 12044.47 and was also helped by some slightly better than expected economic reports. The Standard & Poor's 500-stock index added 23.25 points or 1.88% to 1261.15, while the Nasdaq Composite rose 57.99 points or 2.20% to 2697.97.
The EURUSD (see Chart Above) finished higher as last trading at 1.3815, despite the cut in interest rates and was bought on the back of the reports out of Greece. The AUD/USD moved higher, trading around 1.04 after falling as low as 1.02 during yesterday's trading session.
Gold rose continued to rise as investors continued to seek the safe haven metal, Comex futures added $36.50 or 2.05% to close at a six week high at $1765.10.
WTI oil closed at the highest level in two months, following the equity markets as investors sort riskier assets.
The markets will be closely following the Non-Farm payrolls out tonight in addition to any reports from the G20 meeting currently underway.
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