ASX to edge higher after Federal Reserve encourages US investors
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The news: Australia's sharemarket is poised to rise once trading begins on Wednesday after Wall Street investors were encouraged by Federal Reserve commentary on inflation and interest rates. US consumer confidence data that contained improved near-term expectations also helped investor mood.
The numbers: In late trading, the Dow Jones Industrial Average was up 69 points, or 0.2%, to 35,402.47. The broader S&P 500 index was lower by 2.65 points, or 0.06%, to 4,547.78. The technology focused Nasdaq was up 14.8 points, or 0.1%, to 14,255.82.
The US dollar hit a roughly three-and-a-half-month low against a basket of peers after Fed governor Christopher Waller flagged the possibility of lowering the policy rate in the months ahead. The Aussie dollar was buying 66 US cents.
In Australia, ASX 200 futures was higher by 12 points, or 0.17%, to 7050.
The context: Waller said he is "increasingly confident" that the central bank's policy rate is sufficiently restrictive and even hinted at the possibility of rate cuts in the months ahead should inflation continue to fall closer to the 2% target.
The most anticipated data release of the week in Australia will be inflation figures from the Bureau of Statistics at 11:30am AEDT. This will influence the central bank's final rate decision of 2023 next week.
Harvey Norman, Lynas Rare Earths and NRW Holdings will be among the ASX companies holding annual general meetings on Wednesday.
The source: Reuters
