Australian shares are poised to open higher on Thursday, tracking a broad rally in US markets driven by strong corporate earnings and shifting macroeconomic expectations.
The S&P 500 rallied approximately 1% in the session, lifting global risk sentiment ahead of the Sydney open.
The US benchmark index was buoyed by record earnings from major American banks, which provided a counterweight to broader market volatility.
Simultaneously, softer-than-expected inflation data in the US prompted bond traders to abruptly reverse bets on an imminent Federal Reserve rate hike, easing pressure on equity valuations.
Oil prices also provided support, hitting a one-month high as energy markets reacted to the shifting risk landscape.
The commodity’s strength adds to the positive backdrop for Australian resources stocks, which often track global energy trends closely.
Australian equities had previously closed their strongest week in three months, setting a constructive tone for the start of the trading week.