Shares on the Australian Securities Exchange (ASX) are expected to open about 0.6% higher when trading resumes on Thursday but they may not recoup the losses from the previous day.
The positive tone came from the United States where stock indices finished slightly stronger despite a hiccup caused by reports that President Donald Trump was set to fire Federal Reserve Chair Jerome Powell.
At the time of writing the S&P/ASX 200 index September share price index contract was trading 53 points above the previous settlement at 8,588 on a day when unemployment data will provide more insights into the state of the Australian economy.
At the time of writing the September share price index contract was trading 66 points above the previous settlement at 8,545, more than erasing the gains of the previous day when the benchmark’s index closed at a new high.
U.S. share markets rose in a volatile session on Wednesday (Thursday AEST) that included not only the Powell sacking speculation but also news about trade and more corporate earnings results.
The Dow Jones Industrial Average rose 0.5% while the S&P 500 and Nasdaq Composite each added 0.3%, the technology-heavy latter benchmark reached another record close.
Shortly before midday in New York shares and the U.S. dollar fell and bond yields rose after news reports that Trump might sack Powell, which the President swiftly denied while continuing to criticise the Fed boss for not cutting interest rates.
"The Fed's independence is hugely important to our overall economy, so you saw the market react when that initial headline came out," CalBay Investments Chief Investment Officer Dylan Bell was quoted in a Reuters story as saying.
A higher opening on the ASX is good news for investors reeling from the worst daily performance since 5 May with the S&P/ASX 200 Index dropping 0.8% to 8,561.8 on Wednesday as nine of the 11 sectors finished lower.
Eyes will be on financials and materials stocks as they led the falling ASX sectors on Wednesday.
In economic news today, the Australian Bureau of Statistics releases its June unemployment report with CommSec forecasting a rebound in employment.
In Australian fixed interest markets, Australian Government bond rates yields rose with 10-year rates adding 0.05% to 4.381% and two-year rates edging up 0.06% to 3.406%.
