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Wall St closed higher overnight as traders lifted Federal Reserve rate cut expectations. The Dow Jones closed 0.46% higher, the S&P 500 ended the trading session over 1% higher and the tech-heavy Nasdaq closed 1.19% in the green.

Over in Europe, markets closed higher following the release of softer-than-expected US jobs data. Germany’s DAX rose 0.96% and the French CAC and the FTSE 100 both gained nearly half a percent.

Locally yesterday, the ASX200 closed 0.70% higher with the majority of the sectors closing in the green. The real estate and utilities sectors led gains, rallying 1.73% and 1.24% respectively. This was offset by the industrial sector which fell 0.18%.

What to watch today:

• The Australian share market is set to open higher with the SPI futures suggesting a rise of 0.49% at market open this morning.
• On the commodities front this morning,
  • Oil is trading 0.75% higher at 78 US dollars and 70 cents a barrel after Saudi Arabia rose crude prices for Asian customers, suggesting confidence in global energy demand.
  • Gold is trading 0.98% higher at 2323 US dollars an ounce and iron ore is trading 0.04% lower at 118 US dollars and 3 cents a tonne.

Trading Idea:

• Bell Potter maintains a buy rating on GrainCorp (ASX:GNC) despite slightly lowering its 12-month price target to $9.20. The buy rating is maintained by Bell Potter after the outlook for GNC is shifting towards the 2024-25 crop and potential La Nina development and what this means for FY25 earnings. Improved east coast prospects have emerged at a period when Northern Hemisphere crop conditions have arguably deteriorated and would be typically viewed as favourable for accumulation margins and oilseed basis.