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The Australian sharemarket is set for a strong start this morning as Wall Street kept the good times rolling with gains for the third-straight day, writes Kyle Rodda.

Global stocks have maintained their bounce. It's looking more like a market that is searching for it's next high now, as price action, from a technical perspective, suggests the recent wave-lower is over.

Hence, from here, considering trade-war risks, and therefore anxiety in the market, remains high, the matter becomes whether stock indices are preparing to pop in a new higher-high, or whether what we will see is a new lower-high. The result of that simple binary will inform market participants what the broader trend is in the market: are we still trending higher, or are we seeing the start of a trend reversal?

Read the full 8@eight here.

Here are the overnight market highlights:

ASX futures up 47 points or 0.7% at 7.45am AEST
AUD -0.5% to 68.92 US cents
On Wall St at 4pm: Dow +0.8% S&P 500 +0.9% Nasdaq +1%
In New York: BHP +1.2% Rio +2.6% Atlassian +2.9%
In Europe: Stoxx 50+1.6% FTSE +0.8% CAC +1.4% DAX +1.7%
Spot gold -0.8% to $US1286.29 an ounce at 1.30pm New York time
Brent crude +1.5% to $US72.86 a barrel
US oil +1.5% to $US62.93 a barrel
Iron ore +2.3% to $US99.21 a tonne
Dalian iron ore +2.7% to 689 yuan
LME aluminium +0.3% to $US1860 a tonne
LME copper +0.2% to $US6100 a tonne
2-year yield: US 2.29% Australia 1.22%
5-year yield: US 2.17% Australia 1.26%
10-year yield: US 2.39% Australia 1.64% Germany -0.1%
10-year US/Australia yield gap near 7.45am AEST: 75 basis points

The local sharemarket is within touching distance of a fresh 11-year high despite the trade war rattling global markets earlier this week.

Australian shares have more than recovered those losses from earlier this week, even as Macquarie, ANZ and Westpac traded ex-dividend, weighing heavily on the benchmark index.

The fundamentals for the market have simply been too strong. Oil prices have continued to surge, while iron ore prices are now at their highest level in five years, just $US2 off $US100. Base metal prices have also moving higher.

Outside of that, the prospect of a rate cut in July has been fully priced in with a rate cut in June also now more likely than not. The Aussie dollar is trading at its lowest point in three years outside of the January flash crash and the Australian 10-year bond yield is at a record low.

While the trade war provided investors with a nervy start to the week, everything else has seemingly been going the way of the equity market.

Good morning and welcome to Markets Live for Friday.

Your editor today is William McInnes.

The market is within touching distance of a fresh 11-year high and interest rate futures have continued to fall overnight.

This blog is not intended as investment advice.