Australian Stock Market Set to Open Higher on Friday
Australia's stock market is set to open higher on Friday, following Wall Street's surge driven by AI. The S&P/ASX 200 index rose 2.15% throughout July and is expected to maintain a 0.86% cash gain through the close of the month.
Microsoft's better-than-expected cloud forecast and capital expenditure led to a significant jump in its share price, with the company now seen as part of the 'trusted AI winner' group. This label is particularly important for investors who have been reacting negatively to AI-related expenses that do not generate cash flow.
The Reserve Bank of Australia's cash rate remains at 4.35%, and Governor Michele Bullock has stated that the complete impact of prior rate hikes is still unfolding. The bank's policy announcement is scheduled for August 11, and data on producer prices and private credit will be published on Friday after markets begin trading.