Australian shares set to edge lower despite Wall Street gains

The news: The Australian sharemarket is set to dip at the start as investors turn cautious ahead of earnings season, despite major US indices continuing to add to recent gains.

The numbers: The Dow Jones index is trading 0.24% higher after hitting a record close on Friday, while the broader S&P 500 gained 0.19% and the tech-heavy Nasdaq added 0.27%. In the local market, ASX 200 futures were trading 7 points or 0.06% lower at 7437 points at 7:00am AEDT on Tuesday.

The context: On Wall Street, tech stocks added to their recent run up ahead of key sector earnings this week and next. Investors are also awaiting reports on the personal consumption expenditure index, S&P Global PMI readings and an advance fourth-quarter GDP print to weigh the US central bank's next policy decision when it meets on 31 January. In the local market, traders are treading with caution ahead of upcoming corporate reports after a number of critical miners announced pullbacks amid tumbling prices for battery minerals.