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Aust shares look set to open higher

AAP

The Australian market looks set to open comfortably higher after all three major Wall Street indexes found yet further record highs.

At 0700 AEDT on Tuesday, the share price futures index was up 19 points, or 0.33 per cent, at 5,731.

In the US, stocks started the fourth quarter on a strong note as data pointed to underlying strength in the economy with a measure of manufacturing activity surging to a near 13-1/2-year high in September.

At the closing bell, the Dow Jones Industrial Average was up 0.7 per cent at 22,557.60, the S&P 500 had gained 0.4 per cent to 2,529.20 and the Nasdaq Composite had added 0.3 per cent to 6,516.72.

Locally, in economic news on Tuesday, the Reserve Bank of Australia holds its monthly board meeting and announces its interest rate decision.

The Australian Bureau of Statistics releases August's building approvals data, a key indicator of potential home construction activity and measuring the number of new home approved by local councils in the month.

The ANZ-Roy Morgan Consumer Confidence weekly survey is due out, as is the ANZ job advertisements series for September.

No major equities news is expected.

The Australian market on Monday closed closed higher after investors started the new quarter in a bullish mood following a positive lead from the US and encouraging economic data from China.

The benchmark S&P/ASX200 index rose 47.7 points, or 0.84 per cent, at 5,729.3 points.

The broader All Ordinaries index was up 46.4 points, or 0.81 per cent, at 5,791.3 points.

Meanwhile, the Australian dollar higher against its US counterpart despite the greenback itself strengthening.

The local currency was trading at 78.28 US cents at 0700 AEDT on Tuesday, from 78.20 on Monday.

CURRENCY SNAPSHOT AT 0700 AEDT:

One Australian dollar buys:

* 78.28 US cents, from 78.20 on Monday

* 88.24 Japanese yen, from 88.26 yen

* 66.69 euro cents, from 66.47 euro cents

* 58.96 British pence, from 58.58 pence

* 108.77 NZ cents, from 108.71 cents

GOLD:

The spot price of gold in Sydney at 0700 AEST was $US1,271.62 per fine ounce, from $US1,273.99 per fine ounce on Monday.

BOND SNAPSHOT AT 0700 AEDT:

* CGS 4.50 per cent April 2020, 2.0392pct, unchanged

* CGS 4.75pct April 2027, 2.7943pct, unchanged

Sydney Futures Exchange prices:

* December 2017 10-year bond futures contract at 97.115 (implying a yield of 2.885pct), from 97.10 (implying a yield of 2.90pct) on Monday

* December 2017 3-year bond futures contract at 97.80 (2.20pct), from 97.79 (2.21 pct).

(*Bond market closes taken at 1630 AEDT previous local session; currency closes taken from 1700 AEDT previous local session)