A broad rally to close out the week in New York has lit a rocket under Australian shares, which are expected to jump when trading resumes on Monday.
The S&P/ASX 200 should begin 1.1% higher than the previous close, based on ASX futures trading, which quoted the December share price index contract 92 points over the previous settlement at 8,519 points.
This would mark a turnaround from the performance on Friday when the benchmark dropped to its lowest point in six months.
The impetus came from the United States where stocks rallied on increased expectations that the U.S. Federal Reserve Board would lower interest rates next month, albeit policymaker messaging was mixed.
New York Fed President John Williams said the Fed could still cut rates in the near term, while Dallas Fed President Lorie Logan called for them to be left on hold while the central bank assesses the effect of current rates on the economy.
"New York Fed President Williams' comments seem to have shifted the perception on that December rate cut potential," Baird investment strategy analyst Ross Mayfield was quoted by Reuters as saying.
The rate cut timing hopes were also raised by weaker-than-expected jobs numbers.
The Dow Jones Industrial Average rose 1.08%, the S&P 500 added 1% and the Nasdaq Composite rose 0.9%.
The Australian sharemarket finished lower on Friday with the S&P/ASX 200 losing 1.6% as nine of the eleven sectors closed in the red.
Companies to watch include BHP Group (ASX: BHP), which has scotched media reports that it plans another bid for Anglo American, and Gentrack Group (ASX: GTK), which has released its full-year results.
In the bond markets, the Australian Government bond yield curve flattened as two-year rates rose by 0.27% to 3.681% and 10-year rates fell by 0.11% to 4.458%.
