Aust stocks set to open higher

Local market to follow gains on Wall Street as confidence in US economy builds.

The Australian market looks set to open higher after gains on Wall Street amid greater investor confidence the United States economy can withstand an expected reduction of Federal Reserve stimulus measures.

At 0645 AEST, the September share price index futures contract was up eight points at 5,264.

In economic news, Reserve Bank of Australia assistant governor Malcolm Edey (Financial System), is scheduled to be a panel member at the Financial Services Institute of Australasia (FINSIA) Financial Services Conference in Sydney.

The Westpac-Melbourne Institute Leading Indexes of Economic Activity report is due out.

No major equities news is expected.

In Australia, the market yesterday was almost unchanged as strength in the banking sector outweighed weakness among resources stocks.

Cautious investors are biding their time ahead of the outcome of the US Federal Reserve's policy meeting and an expected announcement tomorrow, AEST, on the tapering of its economic stimulus.

The benchmark S&P/ASX200 index was up 3.2 points, or 0.06%, at 5,251.2 points, while the broader All Ordinaries index was up 3.5 points, or 0.07%, to 5,245.2 points.