Investing.com - The Australian sharemarket added 0.7% in the first hour of Monday's trade, trading just 0.3% from its all-time highs, riding the wave of positive momentum that has seen global equity markets reach new peaks as investors position for a worldwide cycle of rate cuts.
Despite a lackluster session on Friday and mixed trading on Wall Street, futures suggest a 0.1% rise for the S&P/ASX 200 Index at the opening. The local market remains 76 points short of the record set earlier this month, but it has seen a surge of over 1% in three of the past four weeks.
According to Shane Oliver, Head of Investment Strategy at AMP, the steady stream of economic news paints a picture of a 'Goldilocks' scenario - a state of moderate economic growth, low unemployment, and declining inflation. Central banks are expected to continue their course towards rate cuts this year.
Some of the market's heavyweights, particularly in the iron and oil sectors, are set to be the center of attention as both commodities saw a dip in prices over the weekend. Oil prices softened as geopolitical tensions in the Middle East seem to be easing, with Israeli officials mulling over a ceasefire in Gaza.
Meanwhile, NRW Holdings Ltd (ASX:NWH) and Perenti Global Ltd (ASX:PRN), both prominent names in the resources sector, will be trading ex-dividend on Monday.
On the bond markets, Australian 10-Year rates were at 4.01%.