Aussie market looks set to open higher as Wall Street fires up

A man looks at screens displaying market information as he walks past the Australian Stock Exchange in central Sydney July 4, 2013. Australian shares rebounded 1 percent on Thursday, as Wall Street rose modestly higher overnight and a rise in metals price — A man looks at screens displaying market information as he walks past the Australian Stock Exchange in central Sydney July 4, 2013. Reuters/David Gray

The Aussie market is likely to open higher as Wall Street’s main three indexes close at record highs. The share price futures index reaches 0.17 percent, or 10 points at 5,797 at 0700 AEST on Monday.

In the United States, data indicated that non-farm payrolls rose 138,000 last month, well short of the 185,000 that economists have predicted. April and March were revised lower by 66,000 jobs.

Markets anticipated the Federal Reserve to boost interest rates this month as traders expect a 90.7 percent chance of a quarter-point hike per Thomson Reuters data. The jobs figures looked little to dent investor sentiment: the S&P 500, the Nasdaq and the Dow Jones Industrial Average. The Australian Bureau of Statistics’ business indicators for the March quarter are slated to be out locally Monday.

The ANZ job advertisements series for May are likely to be out while no major equities news is expected. Last week, the Australian market ended on a high note, with June 2 its best day since March, as solid overseas markets added traders bought back into miners and banks. The benchmark S&P/ASX200 index went up to 50 points, 0.87 percent at 5,788.1 points.

The broader All Ordinaries index rose to 0.84 percent or 48.6 points at 5,821.1 points. Meanwhile, the Aussie dollar is back at 74 US cents.

Here is the currency snapshot at 0700 AEST per news.com.au. One Australian dollar buys: 74.26 US cents from 73.90 on Friday, 82.00 Japanese yen from 82.47 yen, 65.88 euro cents from 65.88 cents, 57.75 British pence from 57.46 pence and 104.14 New Zealand cents from 104.44 NZ cents.

Wall Street at record highs

San Francisco Federal Reserve Bank president John William previously said that four rate hikes would be suitable if the economy obtained a solid boost. He considered three interest rate rises as a “baseline scenario.”

Fed Governor Jerome Powell told CNBC that he was expecting three interest rate increases this year. The market has priced in a 93.6 percent chance of a 25 basis point rise at the central bank's June 13-14 meeting, according to ABC. An essential key factories report indicated that activity ticked up last month following two consecutive months of slowing.

ISM manufacturing was up from 54.8 to 54.9 while the employment component of the survey is on the rise and the price pressures reportedly remained subdued. Meanwhile, US President Donald Trump declared the the US is withdrawing from the 2015 Paris climate agreement. For more of this news, watch the video below.

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