Australian shares are set to open higher, after a tech rally helped lift US benchmarks.

ASX futures were up 0.4% or 29 points as of 8:00am on Tuesday, suggesting a higher open.

Technology shares propelled major US stock indexes to fresh records Monday.

The S&P 500 added 0.8%, the Nasdaq Composite was 1% higher, and the Dow Jones Industrial Average was up 0.5%.

In commodity markets, Brent crude oil was uyp 2.2% to US$84.41 a barrel, while gold was down 0.6% at US$2,319.14.

In local bond markets, the yield on Australian 2 Year government bonds was down at 3.88% while the 10 Year yield was also down at 4.11%. US Treasury notes were up, with the 2 Year yield at 4.77% and the 10 Year yield at 4.28%.

The Australian dollar was 66.10 US cents, down from its previous close of 66.12. The Wall Street Journal Dollar Index, which tracks the US dollar against 16 other currencies, was down at 100.00.


Chinese shares ended mixed, as investors digested the latest batch of economic data. The Shanghai Composite Index ended 0.55% lower, the Shenzhen Composite Index was flat while the ChiNext Price Index gained 0.8%. China's industrial production and fixed asset investment missed expectations in May, while retail sales bettered April's growth, official data showed earlier today. Among major stocks, Poly Developments & Holdings fell 2.0% and Midea Group declined 1.65%. Gainers included BYD, which rose 1.6% and SMIC, which added 2.75%.

Hong Kong's Hang Seng Index closed flat at 17,936.12 after a choppy trading session. Investors were likely digesting data pointing to house prices falling in May despite more government measures. The sluggish economic data in May will likely increase calls for rate cuts by the People's Bank of China, which kept the medium-term lending facility rate unchanged at 2.5% despite growing pressure, ING analysts write in a note. Among decliners, ENN Energy fell 3.5%, Longfor Group was 3.4% lower and China Resources Beer lost 3.1%. Among advancers, China Mengniu Dairy rose 3.0%, SMIC gained 2.6% and Sunny Optical Technology was 2.2% higher.

Japanese stocks ended lower, dragged by falls in real-estate stocks, as uncertainty grows about the Bank of Japan's policy outlook. Sumitomo Realty & Development dropped 4.9% and Mitsubishi Estate shedded 4.2%. The 30-year Japanese government bond yield rose 3 basis points to 2.120%, while the 10-year yield fell half a basis point to 0.925%. Kadokawa lost 9.3% due to uncertainty over a cyberattack's impact on its earnings. The Nikkei Stock Average fell 1.8% to 38,102.44. Investors are focusing on economic data and their policy implications.

India markets were closed for Eid al-Adha.


Stocks in the U.K. ended lower Monday, as the FTSE 100 Index fell 0.1% to 8,142.15.

In Europe, shares closed higher, with the STOXX Europe 600 Index up 0.1% to 511.49, Germany's DAX adding 0.4% to 18,068.21 and France's CAC 40 gained 0.9% to 7,571.57.

North America

Technology shares propelled major US stock indexes to fresh records.

The S&P 500 added 0.8%, and the Nasdaq Composite was 1% higher. Both closed at records. The Dow Jones Industrial Average was up 0.5%. Treasury yields rose, with the benchmark 10-year yield hitting 4.277%.

Information technology was the S&P 500's best-performing sector, with chip makers having a particularly good day. Broadcom led the way with a 5.4% gain, while Super Micro Computer and Micron Technology also outperformed.

Monday's advance extended a hot streak for major stock indexes, which have benefited from increasing confidence in the economy and the prospect of interest-rate cuts from the Federal Reserve later this year. The S&P 500 is now up 15% in 2024. Pullbacks have been rare and volatility has been exceptionally low.

A flurry of central-bank decisions, economic data and speeches from Fed officials could inject some excitement later in the week. Central-bank officials are due to meet in the U.K., Switzerland, Norway and Australia. Switzerland was an early mover in cutting rates.

U.S. retail-sales data for May are due Tuesday, offering the latest look at the health of the U.S. consumer. Economists polled by The Wall Street Journal expect a 0.2% increase in retail sales from a year earlier. Resilient consumer spending has helped power a strong economy and rising corporate profits.

If cracks start to show in consumer spending or the labor market, the Fed could slash rates sooner than expected, analysts say.

"We're watching the labor market closely for any signs that recent weakening might be accelerating as a signal for the Fed to lower rates more than currently expected," said Steve Wyett, chief investment strategist at BOK Financial.

Traders in interest-rate derivatives currently see a roughly 65% chance that the central bank will cut rates by its September meeting, according to CME Group.

Despite 30 records for the S&P 500 this year, some investors are concerned about problems below the surface. More stocks have been falling than rising in recent weeks: The percentage of S&P 500 companies trading above their 200-day moving average fell to the lowest level of the year Monday, according to Dow Jones Market Data.

Big gains from index heavyweights such as Apple, Microsoft and Nvidia have more than offset weakness elsewhere. The information-technology sector, which has the top weight in the S&P 500, is up 7.9% in the past seven trading days.

"Breadth has weakened," said Tim Hayes, chief global investment strategist at Ned Davis Research. "Benchmark records are not confirmed by most markets, sectors and stocks."