The Australian share market sets to open higher after Wall Street rallied to a four-month high.

The Dow Jones on Friday gained 197.84 points (1.86 percent) at 10,860.26, the highest levels since mid-May.The broader S&P 500 index added 2.12 percent and the technically inclined Nasdaq composite index increased by 2.33 percent.

On Saturday morning, the Sydney Futures Exchange, the December share price index futures contract was 57 points higher at 4677 points.

Friday's trading saw the benchmark S&P/ASX200 Index was down 31.7 points (0.68 percent) at 4601.9, and the broader All Ordinaries Index also went down 28.5 points (0.61 percent) to 4651.5.

The miners took a slump on Friday's trading. Mining giant BHP Billiton Limited (ASX: BHP) slipped 18 cents at $39.04. Rio Tinto Limited (ASX: RIO) lost 44 cents to settle at $75.60

The banks began trading on uncertain grounds as they wait for the Reserve Bank of Australia to meet on Tuesday. Westpac Banking Corporation went down 23 cents at $23.49 as the National Australia Bank Limited (ASX: NAB) slipped 40 cents at $25.55. The Australia and New Zealand Banking Group (ASX: ANZ) also lost 27 cents at $23.60. The Commonwealth Bank of Australia (ASX: CBA) dipped lower by 81 cents at $51.82.

Even insurance firms slightly slipped with AMP Limited (ASX: AMP) down by three cent at $5.09 and the QBE Insurance Group Limited (ASX: QBE) going down further by 22 cents at $17.19. Insurance Australia Group Limited (ASX: IAG) took a down turn of five cents at $3.66.

Retailers are on a seesaw. Woolworths Limited gained three cents at $28.91 while Harvey Norman Holdings Limited (ASX: HVN) decreased by eight cents at $3.80. David Jones Limited (ASX: DJS) continued the dip losing six more cents to settle at $4.94.

Transportation companies still take it slowly. Toll Holdings Limited (ASX: TOL) went down further with seven cents at $6.50 while Qantas Airways Limited (ASX: QAN) went up one cent at $2.67.