Australian shares are set to rise on Friday, following a tech-driven rally on Wall Street and a surge in gold prices.
ASX 200 futures climbed 44 points, or 0.6%, as of 8am AEST, indicating a strong opening ahead.
On Thursday, the S&P/ASX 200 gained 1.1%, or 87.8 points, closing at 8075.7, marking its best performance since mid-August.
This increase was spurred by expectations of a quarter-point interest rate cut by the US Federal Reserve, following the latest producer price data.
US markets saw a significant boost overnight, with the Nasdaq up 1% as Nvidia shares rose nearly 2%. The week’s rally has added over $1.3 trillion to the S&P 500, according to Bloomberg.
Gold prices soared, hitting a record high of $2,558 an ounce, as investors looked to the precious metal amid anticipation of Fed rate cuts.
Oil prices also surged, rising almost 3% due to potential supply disruptions from Hurricane Francine in the Gulf of Mexico. Brent crude reached $72.17 per barrel. Meanwhile, the Australian dollar strengthened, with a 0.8% gain expected for the week.
In global markets, the European Central Bank cut its key deposit rate by 25 basis points to 3.5%, but provided little guidance on future rate adjustments. This prompted traders to slightly adjust their expectations for further rate cuts later this year.
On the bond markets, 10-year and 2-year rates were at 3.85% and 3.566%, respectively.
