Investing.com - In the wake of a robust week on Wall Street, Australia's stock market lifted by 0.8% within the first hour on Monday's trade, while ASX 200 Futures added 0.5%.
Reserve Bank of Australia policymakers are set to hold interest rates at their current levels on Tuesday, amid decelerating inflation rates, despite warnings of a possible surge in price growth that could trigger future rate increments.
Later in the week, Australia will disclose its GDP figures for Q2. Forecasts suggest an additional slowdown in the economy following twelve hikes in the interest rate by RBA within the past year.
The S&P 500 index closed last week on an upward trajectory, marking its best weekly performance since June with an overall increase of about half a percent. The Dow Jones Industrial Average also saw gains around approximately one-third of a percent while the NASDAQ Composite dipped slightly under one-tenth of a percent.
Throughout the week, both S&P and Dow outperformed expectations by rallying up to respective highs not seen since July - advancing 2.5% and rallying at 1.4%. In contrast, Nasdaq soared even higher at an impressive rate of 3.2%.
Investors took note as job reports for August hinted at potential economic slowdown that could persuade the Federal Reserve to halt further interest rate hikes. Unemployment rates rose unexpectedly from predictions holding steady at around three-and-a-half percent up to nearly four percent this past month alone.
Meanwhile, Brent crude oil experienced minor gains along with gold prices on commodity markets; both increased marginally ending their trade at $88.69 per barrel and $1940.24 respectively.
Yields remained consistent for 2-year Australian government bonds remaining flatlined at just below 4% whereas 10-year yields witnessed slight increases pushing them over the 4% mark.
Australian dollar stood firm against its American counterpart maintaining its previous closing value while the US Dollar Indexedged slightly upwards relative to other major currencies.
Turning towards Asia where China's stocks mostly ended positively following property easing measures implemented by Beijing aimed at boosting consumption, thereby reviving beleaguered sectors within their economy.
Hong Kong’s financial markets were unable to participate due Friday's Super Typhoon Saola causing closures across city-state.
In Japan, the Nikkei 225 enjoyed appreciable gains driven primarily through strong performances within trading houses alongside electronics manufacturers amid falling long-term government bond yields.
US financial markets will be closed on Monday for Labor Day.