Approved infrastructure spending in the US should see S&P/ASX 200 trade strongly

The S&P/ASX 200 finished 0.3 per cent higher at a fresh record high yesterday, leading a trend across most indices with the Dow Jones, FTSE 100, Hang Seng and Nikkei 225 all finishing their respective days in the green. In a small reversal of fortune, it was the banks and tech companies that led Australian gains while global oil prices also rebounded. Brent Crude rose by US$1.59 or 2.3 per cent, with investors now looking to the US and whether it increases infrastructure spending: increased economic activity will likely raise demand for oil. Base metals also enjoyed gains rising between 0.9 and 2.0 per cent. Spot gold was trading near US$1,729 an ounce at US close. However, iron ore fell by $US9 (5.3 per cent) a tonne to US$162.20 a tonne. In Australia We should see Australian shares rise again at the start of trading, based on the rise of US stocks and Senate approval to pour money into the nation’s infrastructure (see below). The dollar finally edged up to 0.7345, arresting its downward trend. Australian indices ASX 200 was up 0.3 per cent to 7,562.60 ASX24 futures was up 0.2 per cent to 7,480.  S&P/ASX Small Ordinaries rose 0.82 per cent to 3,484.2 All ordinaries rose 0.33 per cent to 7,830.4 S&P/ASX 100 rose 0.26 per cent to 6,256.4  In the US We saw mixed trading overnight in the US. Energy, Industrials and Materials rose on the back of the Senate’s US$1 trillion bipartisan infrastructure package. The Senate also began its vote on a follow-up US$3.5 trillion (A$4.76 trillion) spending package to further boost the economy. US indices Dow Jones rose by 0.5 per cent to record highs of 35,264.27. S&P 500 rose by 0.1 per cent to record highs of 4,436.75.  Nasdaq dropped 0.5 per cent to 7161.04. In Europe European markets also enjoyed a strong day of trading on Tuesday. The market was buoyed by earnings results, despite COVID-19 concerns. Interestingly one of the best performing sectors was Travel and Leisure, which was up 2 per cent on the back of positive guidance by Flutter Entertainment, which rose 8.6 per cent. Flutter is the world’s largest online betting group.  Seems a lot of people might be having a punt during lockdown. In terms of individual performance, Rio Tinto rose 1.2 per cent, while BHP rose by 0.9 per cent.  European indices STOXX 600 rose 0.4 per cent hitting record highs for the seventh straight session to 472.32. German Dax rose 0.2 per cent to 155,770.71 UK FTSE rose 0.4 per cent to 7,161.04 A couple of stocks to watch  Australia’s largest annuities provider, Challenger Ltd (ASX:CGF), will pay shareholders a full-year dividend of 20 cents per share following record sales and rising profits for the 2021 financial year. Shares remain stable at $5.89. James Hardie Industries plc (ASX:JHX) upgraded guidance on strong growth expectations across North America, Asia Pacific and Europe for the current year ending March 31. Shares rose 2.9 per cent to close at $49.32.