Australian shares to open higher after gains on Wall Street
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The news: The Australian sharemarket is poised to rise, after major indices closed higher on Wall Street on Friday with the market continuing its recovery from a steep dive earlier in the week.
The numbers: The Dow Jones index ended 0.13% higher, while the broader S&P 500 gained 0.47% and the tech-heavy Nasdaq added 0.51%. In the local market, ASX 200 futures were up 59 points or 0.76% at 7,781 points at 7am AEST on Monday.
The context: US stocks rose on Friday, led by gains in the technology sector and as the Cboe Volatility Index, Wall Street's "fear gauge," fell after surging at the start of the week.
A day earlier, Federal Reserve policymakers expressed confidence that inflation was cooling enough to allow rate cuts ahead. The Fed is expected to cut rates at its next policy meeting on 17-18 September, but the market is weighing whether a 25 or 50 basis point reduction is more likely.
Traders are currently pricing in a 51% probability of a 50 basis point cut, and 49% odds of a 25 basis point reduction, according to the CME Group's FedWatch Tool.
Investors also await next week's readings on US consumer prices and retail sales for July, which could provide fresh evidence on the chances of a soft landing for the American economy.
In the local market, key earnings on Monday include JB Hi-Fi, Beach Energy, Aurizon and Car Group.
The source: Reuters
