Australian shares are poised to open higher on Thursday, tracking Wall Street’s overnight rebound led by technology and communication services.
By 8am AEDT (9pm GMT), ASX SPI 200 futures were up 66 points or 0.8% to 8,871, signalling a positive start to the local session.
All three major U.S. benchmarks gained ground overnight, with the S&P 500 advancing as communication services led a broad-based rally.
Tesla surged nearly 5% ahead of its annual shareholder meeting and a high-profile vote on Elon Musk’s US$1.5 trillion pay package.
U.S. bond yields rose as data showed services activity expanded at the fastest pace in eight months.
The move coincided with the U.S. Supreme Court’s review of the legality of President Donald Trump’s tariffs, which drew tough questioning from justices and lifted investor hopes that some duties could be rolled back.
ANZ analysts said: "Market pricing for another 25bp FOMC rate cut at the 9-10 December FOMC meeting eased back to 64% vs 70% following the slightly stronger-than-expected ADP report and recovery in the ISM services index.
"The September ADP looks to have been an aberration possibly caused by the looming government shutdown, and the October rebound to August levels suggests the economic picture hasn’t changed much between the last two FOMC meetings.
"Essentially, the economy is unfolding broadly as expected when the last Summary of Economic Projections was published, so FOMC members don’t see a compelling reason to change their (divided) views on a December cut.
"The data overnight suggests the labour market remains soft while not spiralling south, but hiring momentum around zero is hardly an acceptable outcome for the largest economy in the world."
Ahead in today's session, investors will be digesting NAB's full-year results this morning, as well as Amcor and Light & Wonder's quarterly earnings updates.
A number of companies will also hold annual general meetings, including Breville Group, NIB Holdings, Seven West Media, Vicinity Centres, and Zip Co.
At 11:30 am AEDT, Australia’s September trade data is due for release, offering the latest snapshot of export and import trends.
On the bond markets, Australian 10-year and 2-year yields were little changed at 4.366% and 3.605%, respectively.
