Australian shares are set to power higher on a continuing wave of investor confidence.

The SPI200 futures contract was up 36 points, or 0.51 per cent, at 7,044 at 0800 AEDT on Monday.

The S&P/ASX 200 index set new records last week advancing 22.3 points to 7064.1 on Friday,

It followed a rally in US equities that also continued to the end of the week, with the optimism spreading to Europe.

CommSec chief economist Craig James says the local market looks poised to set new records on Monday.

“We had another record close on Wall Street, which is like a broken record itself now,” he said.

“It looks like our market is headed for yet another record high.”

Mr James said data, released on Friday, about China’s economic activity and United States housing figures also encouraged investors.

“There’s no negative news really out there,” he said.

The Australian dollar was buying 0.6875 US cents at 0800 AEDT.