Australian shares set to drop after mixed Wall Street session
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The news: The Australian sharemarket is set to start lower ahead of local inflation data, following a mixed session on Wall Street that saw tech stocks record gains even as other sectors retreated.
The numbers: The Dow Jones index ended 0.55% lower while the broader S&P 500 edged 0.02% higher. The tech-heavy Nasdaq advanced 0.59%. In the local market, ASX 200 futures were down 46 points or 0.59% to 7,746 points at 7:00am AEST on Wednesday.
The context: US stocks lost ground in afternoon trading as benchmark US Treasury yields climbed to multi-week highs after two weak debt auctions.
Investors are awaiting inflation data this week that could sway expectations for rate cuts by the US Federal Reserve. The US core Personal Consumption Expenditures Price Index report - the Fed's preferred inflation barometer - for April is due later this week.
Wall Street has been hitting records recently as investors bet the US central bank could kick off interest-rate cuts this year. Expectations for the timing of rate cuts have see-sawed, with policymakers wary as data still reflects sticky inflation.
In the local market too, investors will be focused on monthly inflation figures at 11:30am to determine the outlook for interest rates.
The source: Reuters
