While US-China tensions are weighing on sentiment, investors continue to be cheered by the prospect of an economic recovery from covid-19 as activity normalises. Data overnight showed a drop in the number of Americans filing for unemployment.
Another 2.1 million US workers filed jobless claims last week, extending a downward trend, but still at sharply elevated levels from before the pandemic, Dow Jones Newswires reported.
New York Mayor Bill de Blasio outlined the first steps for reopening the country's most populated city. "Based on the trends we're seeing in the data, Phase 1 can begin in the first half of June," he tweeted.
On another front, investors will be keeping a close eye on Twitter and Facebook after news that Trump is expected to order a review of a law that has protected social media firms from responsibility for material posted by their users.
Twitter shares fell 2.5 per cent, although experts quoted by The Guardian said Trump's move is largely toothless.
Domestically investors will be watching for any more detail from the trans-Tasman working group on how to re-open the borders between New Zealand and Australia. The group is expected to deliver its recommendations next month.
The ANZ-Roy Morgan Consumer Confidence Index for May – due at 10am – will also be of interest as investors look to gauge how fast the economy is recovering from the lockdown.
The kiwi, meanwhile, remains firm, trading at 62.09 US cents at 8am versus 61.86 US cents at 5pm yesterday.
ANZ Bank strategist David Croy said the currency continues to benefit from largely upbeat global sentiment and "as long as the euphoria lasts, the NZ dollar will remain elevated."
- BusinessDesk
