Australian shares set to edge higher amid fresh gains on Wall St
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The news: The Australian sharemarket is poised to start higher amid modest gains overnight on Wall Street where investors stayed bullish ahead of a busy week of central bank decisions.
The numbers: The Dow Jones index was trading 0.27% higher, the broader S&P 500 gained 0.30%, while the tech-heavy Nasdaq had added 0.14%. In the local market, ASX 200 futures were trading just 9 points or 0.12% higher at 7223 points at 7:00am AEDT on Tuesday.
The context: While US stocks advanced to new annual highs overnight, gains were limited ahead of major market catalysts this week. These include US Consumer Price Index data on Tuesday, followed by the Producer Price Index and the last interest rate decision of the year from the Fed on Wednesday.
The European Central Bank and the Bank of England are also due to make policy announcements later in the week. While markets have almost fully priced in the Fed keeping rates steady, questions remain as to the timing of the first rate cut next year, with traders betting on a nearly 75% chance for May.
In the local market, investors will be focused on a speech by Reserve Bank Governor Michele Bullock in Sydney, in one of her first outings since keeping rates on hold last week.
The source: Reuters
