Markets Live: ASX gets no love

10:47am

A recovery on Wall Street has not translated through to the ASX this morning, with the top 200 index down 9 points or 0.2 per cent to 5743.

It looks a similar story to yesterday, with miners getting all the love and the major banks dragging amid a broad sell-off.

BHP is up a touch, while Rio has enjoyed a 0.3 per cent gain and Fortescue is up a hefty 2.4 per cent. Metals are in favour: Alumina up 3 per cent, Western Areas 2.2 per cent, Mineral Resources 1.7 per cent and Sims Metal Management 1.3 per cent.

9:50am

Speaking at the The Australian Financial Review Banking & Wealth Summit this morning, Treasurer Scott Morrison said that Australia's successful exit from the mining boom eclipsed the nation's exit from the global financial crisis, because that transition was helped in part by the mining boom.

The Treasurer says that investment in non-mining sectors of the economy has returned.

"While mining investment is bottoming, new investment in the non-mining sectors of our economy has returned, growing at 12.4 percent over the last year. Not that long ago, non-mining investment was going backwards by 8 per cent per year," he says.

"We have also seen an almost 10 per cent increase in investment in plant and equipment."

Follow the Summit live blog here.

Treasurer Scott Morrison speaking at The Australian Financial Review Banking and Wealth Summit.
Photo: Dominic Lorrimer

9:16am

Spotify Technology shares surged following the largest-ever direct listing on Tuesday, giving the world's leading streaming music service a market value of nearly $US30 billion ($39 billion).

Shares opened at $US165.90, up nearly 26 per cent from a reference price of $US132 a share set by the on the New York Stock Exchange late on Monday. Spotify's unusual route to publicly trading its shares via a direct listing rather than a more usual initial public offering will likely be watched by other companies tempted to list without selling new shares, and by bankers that could lose out on millions of dollars in future underwriting fees.

Spotify's market debut.
Photo: Michael Nagle

8:45am

The managing director of Blue Sky Alternative Investments will hold a teleconference at 9am AEST "to address shorter opinion" after issuing a denial of the claims made by Glaucus in its short thesis published on the stock last week.

Blue Sky shares return to trading today.

The company is standing by its claim that it has $4 billion in fee-earning assets under management and has called Glaucus' report "materially misleading".

8:25am

SPONSORED POST: Here's what IG Markets has to say about today's trading.

The Australian sharemarket is due for a positive start on Wednesday after global markets steadied overnight following Wall Street's heavy losses to start the week.

Wall Street's Monday pain doesn't translate to panic: Market participants were on guard Tuesday to see whether the return of liquidity following the long holiday weekend in Europe and a number of Asian financial centres would act as fuel to the fire that the US markets started on Monday.

The inordinately-active opening session from the US defied convention of market's drained due to global holidays keeping to strict holding patterns until there is enough depth to support conviction.

While not all global-sweeping sentiment moves originate during the New York session, the majority do.

Therefore, it was remarkable that indices in Europe and Asia controlled their respective declines to modest close-over-close losses. And, when the US traders were back at the wheel, the restraint inspired a notable rebound to offset some of the previous session's losses. The S&P 500's close below the 200-day moving average now looks to be a purely technical development while the Dow's hold above its own long-term average looks more prophetic.

That said, we are only one liquid day into the new quarter. Investors should be careful about settling on their convictions for the next three months and beyond so early.

7:30am

Australian shares are set to open higher as risk-on sentiment returned to Wall Street. The Australian dollar edged higher.

In New York, shares rallied into the close with all three benchmarks either near or more than 1 per cent higher. On the Dow it was a broad advance with 29 of its 30 components higher paced by Nike, UnitedHealth and Johnson & Johnson. Intel was 2 per cent higher.

LPL Financial's John Lynch said market fundamentals "still look pretty good" despite the S&P 500 yesterday falling through its 200-day moving average. Mr Lynch said he sees the latest bout of volatility as simply part of the bottoming process.

SPI futures up 22 points or 0.4% to 5743 at about 6.25am AEST

AUD +0.2% to 76.80 US cents

On Wall St: Dow +1.7%, S&P 500 +1.3%, Nasdaq +1%

In New York, BHP +1.1% Rio flat

In Europe: Stoxx 50 -0.4%, FTSE -0.4%, CAC -0.3%, DAX -0.8%

Spot gold -0.8% to $US1330.50 an ounce

Brent crude +0.8% to $US68.20 a barrel

US oil +0.9% to $US63.58 a barrel

Iron ore -3.1% to $US63.76 a tonne

Dalian iron ore -2% to 449 yuan

10-year bond yield: US 2.78%, Germany 0.50%, Australia 2.60%

7:25am

Welcome to Markets Live.

Your editors today are Vesna Poljak and William McInnes.

This blog is not intended as investment advice.

Fairfax Media.