Aust stocks set for cautious start after mixed Wall St session

The news: The Australian sharemarket is set to open slightly lower with investors cautious after a mixed session on Wall Street and ahead of local jobs data for August.

The numbers: The Dow Jones index edged 0.20% lower, but the broader S&P 500 ended 0.12% higher and the tech-heavy Nasdaq also gained 0.29%, after data showed US consumer prices increased in August but the annual rise in underlying inflation was the smallest in nearly two years. In the local market, ASX 200 futures were trading 5 points or 0.07% lower at 7153 points at 0700 AEST on Thursday.

The context: The moderate increase in US consumer prices in August cemented expectations that the Federal Reserve will leave interest rates unchanged in September. However, stickiness in services inflation has kept alive prospects of a November hike. In the local market, investors will be keenly watching unemployment numbers for August which could weigh on the RBA’s decision about whether or not any further rate hikes are needed.