The Australian sharemarket advanced at the open this morning after a softer-than-expected US jobs report bolstered the case for interest rate cuts in the world's largest economy this year.
The benchmark S&P/ASX 200 Index rose 0.5 per cent, or by 35.1 points to 7664.1 at the start of trade, led by gains in the real estate sector. But trading is expected to remain subdued ahead of tomorrow's interest rate decision from the Reserve Bank.
The S&P 500 jumped more than 1 per cent on Friday after a US Labour Department report showed non-farm payrolls increased by 175,000 jobs in April and the jobless rate stood at 3.9 per cent - both below market expectations.
US interest rate futures are now pricing in two cuts of 25 basis points apiece this year from the Federal Reserve, compared with just one cut priced in before the data.
Stephen Miller, GSFM 's investment strategy adviser, said the softer US jobs print had increased confidence in the market that the Fed would embark on one or more rate cuts this year "rather than none or maybe one".
As for Australia, he added that the RBA would "rely upon the data and the evolving assessment of risks", but said he expected the central bank to yield a "hawkish tone" in its statement this week.
Governor Michele Bullock is also expected to raise the RBA's inflation forecasts on Tuesday. Local traders ascribe just a 3 per cent chance of the cash rate increasing to 4.6 per cent from 4.35 per cent on Tuesday.
Stocks on the move
Qantas customers on cancelled flights will receive up to $450 in compensation after the airline admitted it had misled travellers and agreed to pay $120 million to resolve a legal claim brought against it by the competition regulator. Shares edged up 0.3 per cent.
GrainCorp dropped 4 per cent after downgrading its profit guidance, blaming softer commodity prices and increased competition on global grain markets for the revised forecast. The company said it expected FY24 underlying earnings before interest, taxes and depreciation to be in the range of $250 million to 280 million, down from the previously disclosed range of $270 million to $310 million.
Westpac rallied 1.6 per cent after the major bank announced a $1 billion share buyback and special dividend. Chief executive Peter King said in statement to the ASX that Westpac's balance sheet was in "good shape", and supported a special dividend of 15 per share fully franked and an increase in the buyback program of $1 billion to $2.5 billion.

Sumber : afr.com