Australian shares are set to open higher as risk-on sentiment returned to Wall Street. The Australian dollar edged higher.
In New York, shares rallied into the close with all three benchmarks either near or more than 1 per cent higher. On the Dow it was a broad advance with 29 of its 30 components higher paced by Nike, UnitedHealth and Johnson & Johnson. Intel was 2 per cent higher.
LPL Financial's John Lynch said market fundamentals "still look pretty good" despite the S&P 500 yesterday falling through its 200-day moving average. Mr Lynch said he sees the latest bout of volatility as simply part of the bottoming process.
SPI futures up 22 points or 0.4% to 5743 at about 6.25am AEST
AUD +0.2% to 76.80 US cents
On Wall St: Dow +1.7%, S&P 500 +1.3%, Nasdaq +1%
In New York, BHP +1.1% Rio flat
In Europe: Stoxx 50 -0.4%, FTSE -0.4%, CAC -0.3%, DAX -0.8%
Spot gold -0.8% to $US1330.50 an ounce
Brent crude +0.8% to $US68.20 a barrel
US oil +0.9% to $US63.58 a barrel
Iron ore -3.1% to $US63.76 a tonne
Dalian iron ore -2% to 449 yuan
10-year bond yield: US 2.78%, Germany 0.50%, Australia 2.60%