Australian shares are expected to rebound at the open after easing fears of a global sell-off lifted US markets overnight.
Futures pricing points to the S&P/ASX 200 opening about 1 per cent higher, near the 8,870 mark, recouping losses recorded earlier in the week.
The expected lift follows a steadier session on Wall Street, where the S&P 500 rose by more than 0.5 per cent overnight, easing concerns of a broader global equity sell-off.
Global markets have experienced heightened volatility in recent sessions, including a sharp correction in precious metal prices after a sustained rally. Analysts say part of the uncertainty reflects investor assessment of how Donald Trump’s nominee to chair the Federal Reserve could influence monetary policy and market conditions.
Australian equities have also been pressured by expectations of a domestic interest rate rise, which would increase borrowing costs for households and businesses.
Traders are pricing in a greater than 70 per cent chance of a rate increase, according to the ASX rate indicator, which tracks the pricing of cash rate futures contracts.
