The Australian sharemarket is stronger mid-morning.
The Australian sharemarket is stronger mid-morning.

The Australian sharemarket is set to open higher after legislation was passed in the US to roll back series of spending cuts and tax hikes that could have pushed America back into recession.

The local bourse is set to follow Wall Street's overnight lead after the S&P 500 soared 2.5 per cent, its best rise since December 20, 2011, as traders embraced news of a deal on the fiscal cliff.

The Dow Jones Industrial Index closed up 308.41 points (2.35 per cent) at 13,412.55 while the Nasdaq outperformed with a 92.75 point gain, or 3.07 per cent, to 3112.26.

Gains on the local market are likely to be tempered by yesterday's strong rise.

At 4.56am on the ASX 24, the June share price index futures contract was up 26 points at 4710.

Yesterday, Australia's benchmark S&P/ASX200 index closed up 57 points, or 1.23 per cent, at 4705.9 points, while the broader All Ordinaries index rose 58.3 points, or 1.25 per cent, at 4722.9 points.

It was the S&P/ASX200's highest close since June 1, 2011, when the benchmark index ended the local session at 4707.3 points.

The West Australian

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