ASX set for gains after Fed rate cut spurs Wall Street higher

The news: The Australian sharemarket is set to open sharply higher, tracking gains on Wall Street after the Federal Reserve announced an interest rate cut of 25 basis points.

The numbers: Updated at 7:25am AEDT:

• ASX futures: up 85 points or 1.03% at 8,325 points
• Wall Street: Dow Jones up 1.66%, S&P 500 up 0.74%, Nasdaq up 1.51%
• Europe: FTSE 100 down 0.32%, CAC 40 up 0.76%, DAX up 1.70%
• Spot gold: up 1.83% to USD2,707.84 per ounce
• Oil prices: Brent up 0.76% to USD75.49/barrel, US WTI up 0.64% to USD72.15/bbl
• AUD: up 1.63% at 66.77 US cents
• Bitcoin: up 1.41% to USD76,678.41

The context: US stocks extended a sharp rally sparked by Donald Trump's return as US president, while Fed policymakers took note of an easing US job market and inflation continuing to move toward the US central bank's 2% target. However, expectations for continued rate cuts have been dialled back, as economic data continues to point to a resilient economy and the potential for higher inflation as a result of likely tariffs and increased government spending under Trump.

What to Watch: Full-year results from ANZ and quarterly results for Block.