Aussie stocks set to start lower after weak trading on Wall St

The news: The Australian sharemarket is set to start September on the backfoot, tracking declines on Wall Street where investors stayed cautious on the rate outlook ahead of key wages data.

The numbers: The Dow Jones index fell 0.48%, the broader S&P 500 lost 0.16% while the tech-heavy Nasdaq edged 0.11% higher, with all three indices recording losses for August. In the local market, ASX 200 futures were trading 38 points or 0.52% lower at 7237 points at 0700 AEST on Friday.

The context: Overnight, data on US Personal Consumption Expenditures (PCE) price index, considered an inflation gauge, climbed 3.3% in July, in line with expectations. However, investors stayed cautious as they await more comprehensive non-farm payrolls data for August due on Friday for greater clarity on the Federal Reserve's likely monetary path. In the local market, traders will be watching for monthly housing finance data due at 11.30 AEST.