Australian shares poised for gains after Wall Street rally

The news: The Australian sharemarket is set to start sharply higher, tracking overnight gains on Wall Street where stocks rallied after a benign inflation report lifted hopes the US Federal Reserve is done with its rate hikes.

The numbers: The Dow Jones index is trading 1.68% higher, the broader S&P 500 was up 2.06% to be on track for its biggest one-day rise since late April, while the tech-heavy Nasdaq rallied 2.4%. In the local market, ASX 200 futures were trading 95 points or 1.35% higher at 7120 points at 0700 AEDT on Wednesday.

The context: US inflation data released on Tuesday showed consumer prices were unchanged on a monthly basis for October, the first such reading in more than a year and a softer figure than analysts were expecting. The report fueled hopes that the Fed was unlikely to deliver any more of the rate increases that have spurred volatility throughout markets since early last year and pushed stocks and bonds higher. Meanwhile, local investors will also keep an eye on economic data, with September quarter wages data to be released at 1130 AEDT.