The Australian share market is expected to reach fresh record highs on Monday, buoyed by investor optimism in mining stocks and expectations that the Reserve Bank of Australia (RBA) may soon join the global trend of rate cuts.
By 7 am AEST (9:00 pm GMT) ASX futures were up by 0.3%., adding 22 points to its record closing high of 8212.2 on Friday. Gains were largely concentrated in materials stocks, as recent stimulus measures from China have boosted investor confidence in demand for commodities like iron ore, copper, and lithium.
However, escalating conflict in the Middle East could dominate market sentiment this week as Israel launched a fresh series of airstrikes across Yemen and Lebanon.
On Wall Street, the Dow Jones Industrial Average reached a record closing high on Friday, while the S&P 500 dipped by 0.1%.
Meanwhile, the Australian dollar remained strong at 69.13 US cents, nearing its 19-month peak of 69.37 US cents set on Friday. It is set to end the September quarter 3.7% higher.
Looking ahead, Australia’s private sector credit data is due on Monday, while China is expected to release its purchasing managers' indexes, which will provide further insights into economic activity.
On the bond markets, 10-year rates were at 3.931% while 2-year rates were at 3.542%.