Australian shares are poised to surge into new record territory after US markets hit new highs.

The SPI200 futures contract was up 38 points, or 0.52 per cent, at 7,025 at 0800 AEDT on Friday.

The benchmark Australian stock index smashed past the 7,000-point level for the first time ever on Thursday on a wave of investor confidence that flowed from a signed trade deal between the US and China.

The S&P/ASX200 index on Thursday gained 47 points, or 0.67 per cent, to finish at 7,041.8 points, setting a new record for a third straight day.

The broader All Ordinaries gained 45.1 points, or 0.63 per cent, to similarly set a record high of 7,158.6.

New highs were also hit on Wall Street following the end of the 18-month long tariff war between the two giant economies that had hampered global growth.

IG Markets analyst Kyle Rodda says the strong overnight offshore leads are setting up the ASX200 for a strong start to trade on Friday.

SPI Futures are pointing to jump at the open, likely fuelled by the optimism over the US and China trade-deal.

He said the gains were underpinned by financial sector stocks, which collectively added 22-points to the index in Thursday’s trade.

The Australian dollar was buying 68.99 US cents at 0800 on Friday, up from 69.05 US cents at Thursday’s close.