Aust stocks to open higher

Local market set to follow sharp rallies on Wall St after strong economic data.

The Australian market is tipped to open substantially higher after sharp rallies on Wall Street following strong economic data from China, Europe and the US.

A battery of better-than-expected headlines included data showing strong manufacturing activity in the eurozone and China, the lowest reading of weekly US jobless claims since January 2008 and decisions by the European Central Bank and Bank of England to maintain low interest rates.

At 0648 AEST on Friday, the September share price index futures contract was up 42 points at 5,049.

In economic news on Friday, the Australian Bureau of Statistics is expected to release the producer price index for June quarter and the overseas arrivals and departures figures, also for the June quarter.

No major equities news is expected.

In Australia, the market on Thursday edged higher despite the negative impact of speculation banks could be hit with a deposit levy.

Reports the federal government wanted banks to pay a deposit insurance levy resulted in a panicked sell-off among the big four banks.

The benchmark S&P/ASX200 index was up 0.19% to 5,061.5 points, while the broader All Ordinaries index was up 0.23% to 5,047.1 points.