The Australian sharemarket is set to start the week slightly higher, following a modest rebound on Wall Street and gains across Europe on Friday.
By 7 am (9 am GMT), S&P/ASX 200 futures were trading 21 points or 0.2%, higher at 8805.5.
Overnight, United States equities advanced across the board, with technology stocks leading the rally.
The S&P 500, Dow Jones and Nasdaq all closed higher after in-line inflation data reinforced expectations for further Federal Reserve easing later this year.
Locally, attention this week will centre on the Reserve Bank of Australia’s policy meeting on Tuesday, where governor Michele Bullock is expected to strike a more cautious tone.
Markets broadly anticipate the cash rate will remain unchanged at 3.6%, but August inflation, which climbed to 3% from 2.8% in July, has tempered hopes of near-term cuts. Analysts now expect the RBA to signal that rate reductions are likely to be delayed until price pressures show a more convincing decline.
In addition to the RBA’s decision, investors will parse a slate of domestic data, including the August goods trade balance, household spending figures, and Thursday’s Financial Stability Review.
On the bond markets, the 10-year government bond yield slipped 0.2% to 4.369%, while the 2-year yield ticked down 0.1% to 3.52%.
