ASX tipped to open lower

The news: The Australian sharemarket is set to open lower after world shares extended gains on Wednesday and US inflation readings spurred hopes of a end to the cycle of interest rate hikes.

The numbers: The Dow Jones index is trading 0.6% higher, and the broader S&P 500 had edged 0.26% higher, while the tech-heavy Nasdaq is up 0.23%. In the local market, ASX 200 futures were down about 0.1% at 8am.

The context: World stocks scaled a two-month high, and the dollar stemmed losses as expectations of an end to a global rate hike cycle spurred on investors following benign inflation readings in the US and across Europe. US retail sales also fell in October, though by less than expected, giving some investors cause to celebrate that the US economy is poised for a so-called "soft landing" and that the Federal Reserve is likely done raising rates. Recent US data "supports our view that consumer price inflation will continue to fall more rapidly than many expect, even as activity in the real economy holds up under the weight of higher rates," economists at Capital Economics said in a note.