Australian shares set for slow start after mixed Wall Street session
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The news: The Australian sharemarket is poised to start slightly lower as investors stay cautious after a mixed session on Wall Street.
The numbers: The Dow Jones index ended down 0.49%, the broader S&P 500 edged 0.09% lower while the tech-heavy Nasdaq gained 0.65% to close at a record high. In the local market, ASX 200 futures were down 9 points or 0.11% to 7,879 points at 7:00am AEST on Tuesday.
The context: Investors remain wary as they assess the timing of an interest rate cut by the US Federal Reserve, although technology stocks advanced ahead of chipmaker Nvidia's highly anticipated quarterly results on Wednesday (Thursday AEST).
A solid earnings season and signs inflation may be starting to cool again have reignited hopes for Fed rate cuts this year, pushing major averages to record levels, but Fed officials have been reluctant to say inflation pressures are easing and several have stressed the need for caution. Minutes of the Fed's latest monetary policy meeting are scheduled to be released on Wednesday.
In the local market though, the focus on Tuesday will be the minutes of Reserve Bank’s May board meeting which is likely to reveal the central bank’s thinking on the path for interest rates.
The source: Reuters
