Australian shares to open higher ahead of RBA rate decision

The news: The Australian sharemarket is set to open higher, tracking gains in European shares, ahead of the focus shifting to the Reserve Bank’s rate decision this afternoon.

The numbers: Updated at 7.25am AEDT:

• ASX futures: up 23 points or 0.27% at 8,515 points
• Wall Street closed
• Europe: FTSE 100 up 0.41%, CAC 40 up 0.13%, DAX up 1.26%
• Spot gold: up 0.49% to USD2,896.56 per ounce
• Oil prices: Brent up 0.74% to USD75.29/ barrel, US WTI up 0.92% to USD71.39/bbl
• AUD: up 0.19% at 63.60 US cents
• Bitcoin: down 0.37% to USD95,883.49.

The context: US markets were shut overnight for the Presidents Day holiday. However, European shares rose to record levels, led by defence stocks, as the region's political leaders called for an emergency summit on the Ukraine war amid growing US calls to boost military spending for security. The pan-European STOXX 600 index rose 0.4%. Investors expect earnings in the industry to continue to rise strongly, driven by a significant surge in defence budgets to meet new security needs.

What to watch: RBA rate decision at 2.30pm, with economists widely expecting the central bank to announce a 25 basis point reduction to 4.1%; half-year results from BHP, Dexus, HMC Capital, Reliance Worldwide, Mineral Resources, Seek, among others.