US-China trade talks boost Wall St, Aussie dollar rebounds

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The Australian share market is expected to start the day flat, hovering around its seven-month high.

ASX futures indicate an early trading gain of just one point, practically unchanged.

Market snapshot at 8:00am (AEDT):ASX SPI futures flat at 6,270, ASX 200 (Wednesday’s close) +0.7pc at 6,285AUD: 71.12 US cents, 54.02 British pence, 63.3 euro cents, 79.29 Japanese yen, $NZ1.05US: Dow Jones +0.2pc at 26,218, S&P 500 +0.2pc at 2,873, Nasdaq +0.6pc at 7,896Europe: FTSE 100 +0.4pc at 7,418, DAX +1.7pc at 11,954, CAC +0.8pc at 5,469, Euro Stoxx 50 +1.2pc at 3,435Commodities: Brent crude +0.1pc at $US69.46/barrel, spot gold -0.2pc at $US1,289.65/ounce, iron ore +3.5pc at $US93.08/tonne

However, the Australian dollar had rebounded to 71.13 US cents by 7:20am (AEDT) — reversing a sharp fall on Tuesday, triggered by the Reserve Bank’s latest signal that it may cut interest rates this year.

The local currency began its recovery after the Australian Bureau of Statistics released stronger-than-expected retail trade figures on Wednesday afternoon.

The dollar also climbed to 54.05 British pence, 63.3 euro cents and 79.3 Japanese yen.

‘Good headway’ in US-China talks

Wall Street ended its day with slight gains after White House economic adviser Larry Kudlow said the United States and China had made “good headway” in negotiations aimed at ending their protracted trade dispute.

The Dow Jones index finished 39 points higher, up 0.2 per cent, to 26,218.

The benchmark S&P 500 added 0.2 per cent to 2,873, while the tech-heavy Nasdaq lifted 0.6 per cent to 7,896.

Mr Kudlow told reporters that Beijing has acknowledged

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