Australian shares set to rise after Wall Street gains
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The news: The Australian sharemarket is poised to open higher after major indices on Wall Street ended higher, led by gains in technology stocks.
The numbers: The Dow Jones index provisionally ended 0.29% higher, while the broader S&P 500 gained 0.96% and the tech-heavy Nasdaq added 1.42%. In the local market, ASX 200 futures were up 15 points or 0.18% at 8,236 points at 7am AEDT on Wednesday.
The context: US stocks rose, with easing Treasury yields helping draw investors to high-growth stocks although interest rate policy is still guiding the equity markets.
Investors have been locked in all year on the US Federal Reserve and how it plans to deliver its long-expected bout of interest rate cuts, with each new economic data set studied for how it could influence the thinking of the central bank. Traders have now priced in a nearly 89% chance of a 25 basis-point interest rate cut in November, according to CME FedWatch.
Markets now await consumer price index data, due this Thursday, for the next signpost on the path of interest rates. Third-quarter earnings are also coming in to focus, with major banks scheduled to report this Friday.
The source: Reuters
