The Australian Securities Exchange (ASX) is poised to end the week on a two-day winning streak if the higher opening on Friday flagged by futures trading is maintained across the day.
A 0.6% increase in the S&P/ASX 200 index is expected on the opening at 10 am AEST (12 am GMT) based on the September share price index (SPI) contract trading 56 points above the previous settlement at 8,872 points, at the time of writing.
The catalyst was a stronger night on Wall Street, where employment data maintained expectations of an interest rate cut in the United States from the Federal Reserve Board (Fed).
The Dow Jones Industrial Average and S&P 500 each rose 0.8% and the Nasdaq Composite gained 1% after data showed that the number of Americans applying for unemployment benefits increased more than expected.
But investors are awaiting U.S. monthly jobs numbers to be issued on Friday (Saturday AEST) for more signs about the state of the economy.
"The labour market data we're going to get - payrolls - tomorrow I don't see really changing anything significantly because (Fed Chair Jerome) Powell has effectively already told us we're getting a cut unless it's really, really out of bounds," Horizon Investments Head of Research and Quantitative Strategies Mike Dickson was quoted as saying in a Reuters story.
The Australian sharemarket had closed higher on Thursday with the S&P/ASX 200 adding 1% to 8,826.5 points as financials led nine of the market’s 11 sectors higher.
Burell Stockbroking wealth adviser Adam Dight said clients were being urged to “stay the course”, invest in companies with offshore earnings and avoid stocks that “tripped” during the recent profit reporting season.
Companies with “real” earnings, cash flow and a value proposition were recommended.
“Everyone is a bit bearish but it was one of the best reporting seasons for five years,” he said.
The shares of Coles Group (ASX: COL), Amcor (ASX: AMC), Eagers Automotive (ASX: APE) and Viva Energy (ASX: VEA) trade ex-dividend today, according to CommSec.
In fixed interest markets, Australian Government bond yields followed U.S. yields down, with two-year rates falling 0.55% to 3.406% and 10-year rates dropping 0.16% to 4.351%.
