ASX set to rise as US stocks gain amid efforts to avert Israel war escalation

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The Australian sharemarket is set to open stronger after US stocks rose and bonds fell amid diplomatic efforts to prevent the Israel-Hamas war from expanding into a regional conflict.

The Australian sharemarket is set for a strong opening to Tuesday’s trading session after US stocks rose and bonds fell amid diplomatic efforts to prevent the Israel-Hamas war from expanding into a regional conflict. Oil declined overnight, following last week’s rally, while the Australian dollar advanced.

US stocks rose amid hopes an escalation of the Israel-Hamas war into a wider regional conflict can be prevented.Meanwhile, Russian President Vladimir Putin held a call with the leaders of Egypt, Syria, Iran and the Palestinian Authority, and the Kremlin said there was a “unanimous opinion” on the need for a cease-fire. He spoke separately with Netanyahu.

‘The price action doesn’t reflect an improvement in investors’ outlook for the Israeli conflict, rather the absence of a significant escalation.’Aside from geopolitics, Wall Street will also be focused on corporate results this week. The five biggest companies in the S&P 500 — Apple, Microsoft, Google’s parent company Alphabet, Amazon.com and AI company Nvidia — account for about a quarter of the benchmark’s market capitalisation. Their earnings are projected to jump 34 per cent from a year earlier on average, according to analyst estimates compiled by Bloomberg Intelligence.

Federal Reserve Bank of Philadelphia President Patrick Harker repeated comments he made last week asserting the central bank can hold its benchmark rate steady as long as there is not a sharp turn in the economic data.

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