Australian shares set to rise after Wall Street gains
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The news: The Australian sharemarket is set to start higher, with investors taking cues from overnight gains on Wall Street that were led by megacap growth stocks.
The numbers: The Dow Jones index ended 0.41% higher, while the broader S&P 500 gained 0.62% and the tech-heavy Nasdaq added 0.84%. In the local market, ASX 200 futures were up 19 points or 0.25% to 7,722 points at 7:00am AEST on Wednesday.
The context: US stocks rose after US job openings and labor turnover data showed job openings increased in May after posting outsized declines in the prior two months, but layoffs picked up amid slowing economic activity.
The data is the first in this week's series of US job reports, particularly Friday's release of June nonfarm payrolls, which will be crucial in assessing whether the labour market remains resilient against the backdrop of decades-high interest rates.
US Federal Reserve chair Jerome Powell told a panel that recent economic data represented "significant progress," though he noted that the Fed needed to see more before changing policy.
Investors are divided over the sustainability of the market rally in which the S&P 500 index has risen 14.75% in the first half of the year. Trading volumes are expected to be light throughout the week, with the US market closing early on Wednesday and shut all day Thursday for US Independence Day.
In the local market, traders will be focusing on retail sales and building approvals data due at 11:30am to assess the strength of economic activity.
The source: Reuters
