The Australian sharemarket is poised to more than recoup the losses of the previous day by opening higher on Friday despite a flat finish on Wall Street.
At 9:35 am AEST (11:35 pm GMT Thursday) the S&P/ASX 200 June share price index contract was 22 points (0.26%) above the previous settlement at 8,388 points.
The Australian market had finished lower on Thursday in the wake of losses on Wall Street with the S&P/ASX 200 settling at 8,348.7, down 0.5%.
United States stock indices closed virtually unchanged on Thursday (Friday AEST) but off their day’s lows after bond yields retreated from previous highs driven by concerns about the U.S. Government’s deficit and debt.
The Dow Jones Industrial Average was flat, the S&P 500 index dipped 0.04% and the based Nasdaq Composite rose 0.28%, marking the third successive sessions of losses by the Dow and S&P.
Burrell Stockbroking wealth adviser Adam Dight said the ASX looked okay following the easing in U.S bond yields.
He said clients were “just nibbling away” buying shares because there was no point in holding cash.
“You’re not going to do better in cash between now Christmas,” Dight said.
On fixed interest markets, the Australian Government bond yield curve flattened as 10-year rates dropped 0.18% to 4.414% while two-year rates were unchanged at 3.396%.
