After yesterday's disappointing start to the trading week, this Tuesday's moves will no doubt give investors a bit of spring in the proverbial step. The S&P/ASX 200 Index (ASX: JXO) is having a cracking run so far today.
At present, the index has put on a pleasing 1.03%, lifting it back over 7,520 points. We are now once again looking at a potential new all-time high for the ASX 200 if this keeps up.
So why such a dramatic turnaround for the ASX 200, considering the index took a 0.5% hit just yesterday?
Why is the ASX 200 having such a stellar run on Tuesday?
There are a few positive catalysts today that could all be contributing to this enthusiastic lift that the ASX markets are currently enjoying.
Firstly, the performance of the American markets last night. The ASX almost always at least takes some cues from the US markets. After all, the US is the most influential financial hub in the world. So it's no surprise to see this Tuesday's session be preceded by some strong moves up on Wall Street.
The Dow Jones Industrial Average Index (DJX: .DJI) rose by a solid 0.58%. The S&P 500 Index (INDEXSP: .INX) bounced by an even more pleasing 1.41%, while the Nasdaq Composite Index (NASDAQ: .IXIC) surged 2.2%.
So the ASX was always going to be primed for a good day with a performance like that.
But we've also got some happy Australian news out today that could also be playing a role here.
According to the Australian Bureau of Statistics (ABS), seasonally-adjusted Australian retail turnover climbed 2% over November. That was clearly boosted by Black Friday sales, which the ABS noted continues to gain ground in Australia:
There were rises in all retail industries in November, but it was spending on discretionary goods boosted by Black Friday sales that drove most of the increase.
Further, the ABS also released its building approvals data for November today as well. The statistics show that total building approvals rose 1.6% over the month to 14,529.
Both of these releases from the ABS arguably point to an Australian economy in rude health. This obviously bodes well for the ASX, given most Australian companies' fortunes are tied to the health of the overall economy.
So it's likely that a combination of these catalysts is what's to thank for the ASX's euphoric session so far this Tuesday. Let's see if it holds out for the rest of the trading week.
