Australian Shares Forecasted Edge Higher on Friday as Investors Await U.S. Jobs Data

September 06, 2024 10:19 AM AEST | By Team Kalkine Media

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Australian Shares Forecasted Edge Higher on Friday as Investors Await U.S. Jobs Data — Image source: Things, Shutterstock

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Australian shares are expected to open slightly higher on Friday, as investors approach the day with caution ahead of crucial jobs data from the United States. This data is expected to influence the Federal Reserve's next move, potentially paving the way for interest rate cuts later this month.

Modest Gains for ASX Futures

Futures for the local share price index (YAPcm1) rose by 0.1%, signaling a positive start to the trading day. However, the futures still held a 21.4-point discount to the underlying S&P/ASX 200 index (INDEXASX: XJO), which closed up by 0.3% on Thursday.

The anticipated rise in Australian shares reflects cautious optimism in the market, with investors keenly focused on the upcoming U.S. jobs report, which will provide further insights into the strength of the American labor market and its potential impact on monetary policy.

New Zealand Market Holds Steady

Meanwhile, New Zealand's benchmark S&P/NZX 50 index (.NZ50) remained largely flat in early trade, hovering at 12,681.35 points. The stability of the New Zealand market mirrors the broader regional sentiment, where investors are staying on the sidelines, awaiting clarity from global economic data.

Eyes on U.S. Jobs Report and Federal Reserve

The key jobs data from the U.S. is expected to play a pivotal role in shaping the Federal Reserve's upcoming policy decisions. A weaker-than-expected jobs report could increase the likelihood of the Fed implementing rate cuts to support economic growth. Conversely, a strong jobs report may dampen expectations of an immediate rate reduction.

This uncertainty is keeping investors cautious, with market movements likely to hinge on the outcome of the U.S. labor data and the Fed's subsequent actions.

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