The Australian share market looks set to open higher, after Wall Street’s main indexes rose with investors hopeful that lower corporate tax rates could give a boost to the overall economy.
At 0700 AEDT on Friday, the share price futures index was up 21 points, or 0.35 per cent, at 6,036.
The two chambers of the U.S. Congress approved a $1.5-trillion tax bill this week that would slash corporate tax rates to 21 per cent from 35 per cent.
In late afternoon trading, the Dow Jones Industrial Average was up 100.33 points, or 0.41 per cent, at 24,826.98, the S&P 500 was up 9.66 points, or 0.36 per cent, at 2,688.91, while the Nasdaq Composite was up 23.46 points, or 0.34 per cent, at 6,984.41.
Locally, no major economic or equities news is expected on Friday.
The Australian share market on Thursday posted its first fall for the week as selling in the financial and property sectors outweighed gains by energy producers, miners and retailers.
The benchmark S&P/ASX200 stock index dropped 15.2 points, or 0.25 per cent, at 6,060.4 points, while the broader All Ordinaries index was down 11.6 points, or 0.19 per cent, at 6,156.3 points.
Meanwhile, the Australian dollar has bounced to its highest level in seven weeks, helped by continued strength in commodities prices and a restrained US dollar.
At 0700 AEDT on Friday, the Australian dollar was worth 77.06 US cents, up from 76.60 US cents on Thursday.
The Aussie dollar is also higher against the yen and the euro.
CURRENCY SNAPSHOT AT 0700 AEDT ON FRIDAY
One Australian dollar buys:
* 77.06 US cents, from 76.60 on Thursday
* 87.33 Japanese yen, from 86.86 yen
* 64.91 euro cents, from 64.54 euro cents
* 57.58 British pence, from 57.32 pence
* 109.91 NZ cents, from 109.37 cents
The spot price of gold in Sydney at 0700 AEDT was $US1,266.99 per fine ounce, from $US1,265.93 per fine ounce on Thursday.
BOND SNAPSHOT AT 0700 AEDT:
* CGS 4.50 per cent April 2020, 2.0482pct, unchanged
* CGS 4.75pct April 2027, 2.66425pct, unchanged
Sydney Futures Exchange prices:
* March 2018 10-year bond futures contract at 97.300 (implying a yield of 2.700pct), from 97.305 (implying a yield of 2.695pct) on Thursday
* March 2018 3-year bond futures contract at 97.825 (2.175pct), from 97.830 (2.170pct).
(*Bond market closes taken at 1630 AEDT previous local session; currency closes taken from 1700 AEDT previous local session)