SYDNEY (AFX) - Share prices are expected to trade higher following gains on the New York and London Stock Exchanges on Friday as well as rises in metal and oil prices, dealers said.
Dealers said share prices are likely to push further into record territory led by the resources sector which is also being boosted by a lower Australian dollar which assists export industries.
But, they said, investors will be relatively cautious ahead of the US Federal Open Market Committee policy meeting on Tuesday.
While a further 25 basis points rate hike is expected to take the Federal fund rate to 4.75 pct, markets will be looking for hints of when the current tightening cycle in the US may end.
The S&P/ASX 200 June futures contract ended its last session up 8.0 points at 5,059.0 points, indicating a mildly positive start to trading.
On Friday, the S&P/ASX 200 gained 4.8 points or 0.10 pct to close at a fresh record high of 5,040.1, continuing a string of record closes.
The key indicator closed below a fresh intra-day record of 5,051.9 points. Over the trading week the index jumped 68.4 points or 1.38 pct.
The All Ordinaries Index added 6.0 points to close at new all-time high of 5,001.6 after reaching a record intra-day high of 5,011.4.
In New York, share prices ended higher after weak new home sales data suggested the Federal Reserve might stop raising rates sooner-than-expected.
The Dow Jones Industrial Average rose 9.68 points to 11,279.97. On the week, the benchmark index was flat.
News Corp ended down 0.29 pct while National Australia Bank ADRs eased 0.65 pct.
In London, share prices closed higher with further strength in mining stocks and speculative gains in Marks & Spencer and Tesco offsetting a drop in Prudential as Aviva walked away from offer talks.
The FTSE 100 index closed 46.2 points higher at 6,036.3, while the broader indices were also firmer.
BHP Billiton jumped 3.08 pct on the day while Rio Tinto advanced 2.70 pct.
Major currencies strengthened against the US on Friday but the Australian dollar continued its descent, falling from 0.7108 usd to 0.7098.
Early trade on Monday saw the Australian dollar recover slightly to 0.7104.
Crude oil prices rose on Friday following renewed supply woes in Nigeria.
The May Nymex contract rose by 0.35 usd to 64.26 usd a barrel.
Base metal prices rose on Friday, with the exception of nickel.
Copper hit a new record on Friday following worries about supply from Indonesian mines. The worries centred on news of a landslide near Freeport-McMoRan Copper & Gold Inc's giant Grasberg copper mine in Papua province.
Gold prices rose strongly overnight following a weaker greenback.
The Comex April gold quote rose 9.50 usd to 560.30 usd an ounce.
(1 usd = 1.41 aud)
bruce.hextall@xfn.com
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