The Australian share market is likely to feel the flow-on effects of the positive sentiment on Wall Street overnight.
US stocks were boosted by a technology sector rally, and stronger-than-expected economic growth figures.
Wall Street surges
The tech-heavy Nasdaq led the gains, thanks to Netflix and Facebook shares (which rose 3.5 and 1.1 per cent respectively).
Technology has been the best-performing US sector this year by far — up by more than 20 per cent.
Most sectors finished in positive territory, except for telecommunications, energy and utilities. The second-best performer was health care.
Stronger-than-expected economic growth figures also provided a lift to investor sentiment.
US GDP growth in the June-quarter was revised upwards — from 2.7 to 3 per cent (on an annual basis) — its quickest pace in more than two years.
"The second estimate of US GDP data suggest momentum through the second quarter was much firmer than expected, driven almost entirely by domestic demand, with both consumption and investment revised up," said ANZ's Jo Masters.
"The Fed will like this data. With confidence indicators near all-time highs, business confidence rebounding and employment gains continuing, expect growth momentum to continue through the third-quarter (floods aside)."
In addition, 237,000 new private-sector jobs were created this month, according to the ADP National Employment report released overnight.
The ADP report is often used by traders as a preview to the US Government's official monthly job figures (which are out on Friday).
"The ADP employment report added further good news," said Deutsche Bank economist Phil Odonaghoe.
"In light of the ADP report, our US team has raised its estimate for Friday's official non-farm payrolls report by 15,000 to 200,000."
Australia today
Capital expenditure figures from the Bureau of Statistics will be released today, and investment intentions for 2017-18.
"Although the market looks for a 0.2 per cent quarter on quarter increase, the whisper number is likely higher after yesterday's stellar construction work done numbers," said NAB economist Tapas Strickland.
"The market will also be attuned to expectations for spend, with the market expecting a third estimate of $95.9 billion for 2017-18."
The Australian dollar has also dropped by two-thirds of a per cent to just under 79 US cents.
It is also worthwhile noting that China will release its official manufacturing PMI (purchasing managers index) figures for August.
China's PMI is expected to rise by drop by 0.1 points to 53.4, according to economists polled by Reuters. A result above 50 indicates industry expansion.
