Australian shares looked set to open higher, supported by Wall Street’s gains and growing expectations that the U.S. Federal Reserve will cut interest rates at its final policy meeting of the year. Futures markets showed optimism around a quarter‑point rate reduction, which has underpinned a more positive risk appetite among global investors. This Fed‑cut anticipation eased some pressure on local equities and lifted sentiment heading into the session.
The potential U.S. rate cut outlook has been building steadily, with traders pricing in a high probability of easing following softer U.S. economic data and dovish central‑bank commentary. This dynamic has helped Wall Street indexes rally recently, which in turn has bolstered forecasts for the ASX. However, concerns about domestic monetary policy and the Reserve Bank of Australia’s stance have introduced a note of caution for some investors.
Overall, the ASX was expected to benefit from global easing expectations, especially if the Federal Reserve delivers the anticipated rate cut — a move that could reinforce bullish momentum in risk assets. Analysts will be watching both U.S. and local economic signals closely, as shifts in rate expectations tend to influence broader market direction.