Australian shares set to rise after Wall Street gains

The news: The Australian sharemarket is poised to open higher after gains on Wall Street as stronger-than-expected jobs data set at rest investor concerns about the US economy.

The numbers: The Dow Jones index ended 0.81% higher on Friday, while the broader S&P 500 gained 0.90% and the tech-heavy Nasdaq added 1.22%. In the local market, ASX 200 futures were up 26 points or 0.32% at 8,215 points at 7.00am AEDT on Monday.

The context: The major indices ended higher after data showed US job gains increased in September by the most in six months, and the unemployment rate fell to 4.1%. Traders further reduced bets on a 50-basis-point reduction at the Federal Reserve's 6-7 November meeting and are now pricing in just an 8% chance of a 50-bps rate cut, down from around 31% earlier on Friday, the CME Group's FedWatch Tool showed. The Fed kicked off a monetary easing cycle last month with a 50 basis point rate cut. Meanwhile, bullish investors are awaiting the start of third quarter earnings next week, even as worries persist about an escalation in the Middle East conflict.