Australia’s share market is poised to rise at the opening bell, underpinned by its exposure to energy stocks after oil prices surged last week on the threat of more conflict in the Middle East.
Futures markets are pointing to a slight 0.32 per cent increase in the S&P/ASX 200 Index, but Monday is expected to be a quiet trading session with most of the country observing a Labour Day holiday.
The strength of the US economy reclaimed its spot as the top mover of markets.Credit: Dominic Lorrimer
US stocks rallied Friday after a surprisingly strong report on the US job market raised optimism about the economy.
The S&P 500 climbed 0.9 per cent and got close to its all-time high set on Monday. The Dow Jones Industrial Average rose 341 points, or 0.8 per cent, to set its own record, while the Nasdaq composite clambered 1.2 per cent higher.
Leading the way were banks, airlines, cruise-ship operators and other companies whose profits can benefit the most from a stronger economy where people are working and better able to pay for things. Norwegian Cruise Line steamed 4.9 per cent higher and JPMorgan Chase rose 3.5 per cent.
They helped stock indexes claw back losses from earlier in the week, caused by worries that worsening tensions in the Middle East could lead to disruptions in the global flow of oil. Crude prices rose again Friday, but the moves were more modest than earlier in the week, as the world continued its wait to see how Israel will respond to Iran’s missile attack.
In the meantime, the strength of the US economy reclaimed its spot as the top mover of markets.
Treasury yields soared in the bond market after the US government said employers added 254,000 more jobs to their payrolls last month than they cut. That was an acceleration from August’s hiring pace of 159,000 and blew past economists’ forecasts.
It was a “grand slam” of a report, according to Lindsay Rosner, head of multi-sector investing within Goldman Sachs Asset Management. She said policy makers at the Federal Reserve, who have been trying to pull off the difficult feat of keeping the economy humming while getting inflation under control, “must be smiling.”
