Aussie stocks set to open higher after gains on Wall St

The news: The Australian sharemarket is set to start higher after major indices on Wall Street bounced back overnight, with investors bullish ahead of a U.S. inflation report due on Thursday.

The numbers: The Dow ended 1.16% higher, posting its biggest one-day gain since June 15. The broader S&P 500 index gained 0.9%, taking total gains this year to 17.7%. The tech-heavy Nasdaq added 0.61%. ASX 200 futures were trading 29 points or 0.4% higher at 7275 at 0700 AEST on Tuesday.

The context: The latest U.S. consumer price report due on Thursday is expected to offer clues about the Federal Reserve's monetary policy path after last week's employment report re-ignited fears that the central bank could keep rates higher for longer.