Australian shares set to rise after Wall Street gains

The news: The Australian sharemarket is set to open higher after Wall Street's major stock indices rose, thanks to gains in small-caps and financial shares buoyed by strong earnings.

The numbers: Updated at 7:25am AEDT:

• ASX futures: up 60 points or 0.72% at 8,386 points
• Wall Street: Dow Jones up 0.79%, S&P 500 up 0.47%, Nasdaq up 0.28%
• Europe: FTSE 100 up 0.97%, CAC 40 down 0.40%, DAX down 0.27%
• Spot gold: up 0.41% at USD2,673.52 per ounce
• Oil prices: Brent up 0.12% at USD74.34/ barrel, US WTI down 0.09% at USD70.52/bbl
• AUD: down 0.57% at 66.65 US cents
• Bitcoin: up 1.18% at USD67,833.17

The context: The gains in small caps and financial stocks comes as investors rotate out of expensive megacap tech shares. Morgan Stanley jumped after reporting strong profits following a sharp increase in investment banking revenue, while larger regional banks such as First Horizon and US Bancorp also gained.

What to Watch: Local jobs data for September at 11:30am, quarterly reports from BHP, Santos, AMP and Yancoal, and annual general meetings for Perpetual and Treasury Wine Estates.