Australian shares to open higher after gains on Wall Street
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The news: The Australian sharemarket is set to open higher after gains on major US indices following a strong US jobless claims report that eased labour market concerns.
The numbers: The Dow Jones index ended 0.62% higher, while the broader S&P 500 rose 0.40% and the tech-heavy Nasdaq advanced 0.60%. In the local market, ASX 200 futures were up 19 points or 0.23% at 8,278 points at 7am AEST on Friday.
The context: US stocks rose, with the S&P 500 hitting a fresh record high following the release of upbeat data and gains in chip stocks. A string of robust US economic data eased concerns that the Federal Reserve may be cutting rates aggressively to curb any slowdown.
Weekly jobless claims fell more than anticipated, signalling a steady labour market, while the final reading of gross domestic product confirmed that the economy grew 3% in the second quarter.
Investors have been swaying between a 25- and 50-basis point cut since the Fed commenced its easing cycle, with bets favouring a bigger cut now, up from 38.8% a week ago, the CME Group's FedWatch Tool showed.
The source: Reuters
