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Markets Live: ASX to rally on US performance

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Even in the context of a royal commission, a protracted interest rate rigging case and a money laundering scandal, the pending criminal cartel charges to be brought against ANZ and its appointed investment banks has shocked the financial community.

Most are trying to fathom how what many believe to be standard market practice can constitute a criminal activity that could bring with it jail sentences.

That ANZ and the three underwriters it employed to raise $2.5 billion of quick-fire capital weren't shouting from the rooftops that they had a shortfall was hardly shocking to anyone in the capital markets, although the extent of the shortfall has certainly raised eyebrows.

Jonathan Shapiro has the full story here.

The Australian market has followed the positive lead of the ASX futures this morning, pushing above 6000 points.

The S&P/ASX 200 index is up 46 points, or 0.8 per cent, at 6036.7

The major banks are performing well this morning and are all among the top five market leaders this morning. CSL is doing well, up 1.3 per cent.

BHP Billiton and South32 are also lifting the index this morning following a base metal advance over the weekend.

Galaxy Resources is the index's best performer, up 4 per cent.

AGL Energy is the index's biggest weight this morning but its only wiping 1.2 points.

OneMarket is down 3.4 per cent this morning, having joined the ASX boards only last week.

We're expecting a raft of economic data this week as well as the RBA's cash rate decision.

The cash rate is unanimously expected to hold at 1.5 per cent and according to market analysts, will be one of the least important decisions made this week.

Retail trade figures for April will be released today. The market is predicting a 0.3 per cent increase from March's flat result.

Inventories data for the first quarter will also be released today. The market is expecting that result to be flat from a 0.2 per cent growth in the fourth quarter.

On Tuesday, net export data for the first quarter is expected to show strong improvement, up 0.4 per cent from the fourth quarter when net exports fell 0.5 per cent.

The current account deficit for the quarter, released on Tuesday, is expected to show a narrowing from $14 billion to $10 billion, reflecting a turnaround in the trade balance.

The all-important GDP data for the first quarter is expected to show an increase of 0.8 per cent for the first quarter, an increase of 2.7 per cent for the year.

On Thursday, the trade balance for April will be revealed. It's expected to show a trade surplus of $1.1 billion for the month, a decrease from $1.5 billion in March.

Here are the market highlights this morning:

SPI futures up 34 points or 0.6% to 6029

AUD flat at 75.66 US cents

On Wall St: Dow +0.9%, S&P 500 +1.1%, Nasdaq +1.5%

In New York, BHP +0.9% Rio +1.5%

In Europe: Stoxx 50 +1.4%, FTSE +0.3%, CAC +1.2%, DAX +1%

Spot gold -0.4% to $US1293.40 an ounce

Brent crude -1% to $US76.81 a barrel

US oil -2% to $US65.71 a barrel

Iron ore +1.3% to $US66.16 a tonne

Dalian iron ore -0.8% to 461 yuan

LME aluminium +0.6% to $US2305 a tonne

LME copper +0.6% to $US6896 a tonne

2-year yield: US 2.47%, Australia 2.01%

5-year yield: US 2.75%, Australia 2.33%

10-year bond yield: US 2.90%, Australia 2.70%, Germany 0.38%, Italy 2.64%, Spain 1.41%

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The Australian sharemarket is poised for a strong start to the week after Wall Street lifted on the back of easing tensions in Europe write Tyler Yell and Ilya Spivak.

US shares finished a tumultuous week in a chipper mood, with the bellwether S&P 500 index adding 1.08 per cent.

Upbeat US labor-market data bolstered optimism, but a look at futures markets hints at an earlier positive lead from ebbing worries about Eurozone political instability.

Wall Street's rally on Friday has set up the Australian sharemarket for a bright start to the trading week. BHP & Rio Tinto are expected to open 1.2 and 1.8 per cent higher, respectively. Futures are pointing to a 34-point gain at the open.

Read the full 8@eight .

Good morning and welcome to the Markets Live blog for Monday.

Hope you've had a nice weekend!

Your editor today is William McInnes.

This blog is not intended as investment advice.

Fairfax Media with wires.