Australian shares are poised to open higher on Thursday, following gains on Wall Street where the S&P 500 reached an all-time high after the U.S. Federal Reserve's policy meeting minutes suggested more interest rate cuts could be forthcoming.
Futures point to a 0.4% rise for the S&P/ASX 200, with an expected gain of 33 points at the opening bell. This follows a marginal 0.1% uptick in the last session, bringing the index to 8,187.4, just shy of its record set last month.
In the U.S., all three major indices advanced, with the Dow Jones Industrial Average climbing 1%, while the S&P 500 added 0.7%, resetting its record for the 44th time in 2024. The Nasdaq Composite lifted 0.6%.
The Federal Reserve's minutes from its September policy meeting revealed that while a "substantial majority" of officials supported a 50-basis-point interest rate cut, some participants believed a 25-basis-point reduction would have sufficed.
Overnight, both oil and gold prices slipped, while the Australian dollar hit a four-week low, trading at US67.05 cents as the U.S. dollar strengthened.
In China, onshore-listed stocks suffered their steepest decline in more than four years, as traders expressed impatience with the pace of Beijing’s stimulus efforts. Additionally, weak holiday-spending data added to the negative market sentiment, further weighing on the region's equity performance.
Australian government bond yields followed the upward trend in U.S. Treasuries, with the 2-year yield climbing to 3.835% and the 10-year yield rising to 4.223%.