ASX set to rise as Wall Street gains on softer US jobs data

The Australian sharemarket is poised for a positive start on Monday, with futures indicating a 26-point gain, or 0.3%. This follows a rally on Wall Street driven by softer-than-anticipated US employment data, which eased concerns about further interest rate hikes by the Federal Reserve.

The S&P/ASX 200 closed Friday with a 0.79% rise, reaching 8,682.1, while the All Ordinaries gained 0.69% to 8,854.7. Despite the rebound, the market remains 6.7% below its early-August peak, reflecting ongoing uncertainty over inflation, interest rates, and corporate earnings.

Energy and financial stocks led the gains, with Woodside Energy, Santos, and Commonwealth Bank among the top performers. Technology stocks also surged, with WiseTech Global, Xero, and Technology One seeing significant increases.

In the US, the S&P 500, Dow Jones, and Nasdaq all rose after nonfarm payrolls increased by just 29,000 in September, far below forecasts. The unemployment rate ticked up to 4.2%, further reducing expectations of a Fed rate hike.

European markets also rebounded, with the FTSEurofirst 300 and UK FTSE 100 posting gains. However, the FTSE 100 still recorded its worst weekly drop since April.

Commodities saw mixed movements, with oil prices slightly lower, copper futures up, and gold futures down due to a stronger US dollar and higher Treasury yields.