Australian shares are primed for a positive start following 14-month highs in the US.
The NASDAQ and New York Stock Exchange both gained nearly one per cent. The S&P climbed 0.5 per cent.
10 of the 11 sectors advanced, led by materials stocks, up 2.33 per cent.
The share market rally followed the US consumer price index showing the smallest annual increase to inflation in more than two years in May.
Consumer prices rose just 0.1 per cent in May, according to the US Bureau of Labor Statistics – down from 0.4 in April. That brings the annual inflation rate to four per cent, marking the smallest rise since March 2021.
On the back of this, the US Federal Reserve is tipped to pause its interest rate rises at its meeting tomorrow.
The Australian dollar edged higher. One Aussie dollar is buying 68 US cents and 54 British pence.
Iron ore and base metals improved on hopes for increased demand after China’s central bank lowered a key short-term lending rate to stimulate the economy.
Crude oil rebounded to $US69.26 per barrel.
Back on home soil, Australians are debating whether a 5.75 per cent pay rise for workers on award wages will push inflation up higher.
However, a report from the Governance Institute has revealed our nation’s big business leaders receive an average annual base pay rise of 15 per cent – and that’s not even including bonuses.
The average base pay of an ASX 200 Managing Director among the nearly 2000 companies surveyed sits at $1.6 million, while the average pay of CEOs was just over $1.1 million.