Markets Live: ASX advances, Telstra falls

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10:42am

Telstra expects earnings to be at the bottom end of its full-year guidance range and has flagged challenging conditions to continue in the year ahead.

The telco giant forecast earnings (EBITDA) to be at the lower end of its $10.1 billion to $10.6 billion range, on the back of increasing pressure on both fixed and mobile margins and challenges from the rollout of the national broadband network (NBN).

Telstra said despite investments in new technologies to keep up with industry changes, it expects the ongoing pressures will continue in the 2019 full year.

AAP

10:22am

The S&P/ASX 200 index has recorded a modest gain at the open, up 4.3 points or 0.1 per cent to 6,120.5.

The materials and energy sectors are leading the market this morning as the financial and telecommunication sectors drag.

BHP Billiton, Rio Tinto and South32 are all up in trade this morning.

ANZ, Macquarie and Commonwealth Bank are dragging along with Telstra.

GWA is the market's biggest mover, up 4.8 per cent, following by Western Areas, up 4 per cent.

News Corp has fallen 8 per cent in early trade, the worst mover on the market this morning.

10:00am

Several top strategists are optimistic that the ASX can extend a sharp rally that started about six weeks ago and break through a 10-year high.

The latest push higher takes the market back towards the near-decade high of 6135 the ASX hit in January before inflation worries gripped markets and global trade war concerns flared up to send shares tumbling.

The S&P/ASX 200 Index is up by around 6.2 per cent since the start of April and is now trading at 6116.

It's outperforming the US S&P 500 index, which is around 3.3 per cent higher in percentage terms, and is not too far behind a 7 per cent-plus rise for the German DAX.

Sarah Turner has the full story here.

9:42am

Here are the market highlights this morning:

SPI futures up 4 points at 6100.

AUD trading at US75.47 cents

On Wall St: Dow Jones +0.4%, S&P500 +0.2%, Nasdaq unchanged

In Europe: Stoxx 50 -0.1%, FTSE +0.3%, CAC -0.1%, DAX -0.2%

Spot gold -0.3% at $US1318.30 an ounce

Brent crude -0.5% at $US77.12 a barrel

West Texas Intermediate -0.9% at $US70.70 a barrel

Iron ore +0.9% at $US67.42 a tonne

9:19am

SPONSORED POST

Wall Street edged higher on Friday and the ASX is set up to open the week in a similar vein, writes Ilya Spivak.

The ASX posted a sixth consecutive week of gains to mark the longest winning streak in two years and is set to start this week in the green, with futures poiting to a 4-point gain at the open.

Implied data is anticipating a strong start to the week for BHP with ADRs showing a 1% gain while Rio Tinto is expected to open flat.