Australian shares set to open higher despite nerves on Wall St

The news: The Australian sharemarket is set to start on a high note despite a mixed session on Wall Street, where investor nerves showed ahead of inflation data.

The numbers: The Dow Jones index is trading 0.15% higher, but the broader S&P 500 had edged 0.02% lower, while the tech-heavy Nasdaq is 0.09% down, a day after recording its biggest gain since 26 May. In the local market, ASX 200 futures were trading 60 points or 0.89% higher at 7022 points at 7:00am AEDT on Tuesday.

The context: Wall Street's main stock indexes were making little progress in either direction as investors await a crucial inflation reading that could shape expectations around how long the US Federal Reserve will keep interest rates elevated. Their focus has turned to Consumer Price Index (CPI) data, due out Tuesday morning local time, with economists expecting a headline increase of 3.3% for October, down from 3.7% in September. Investors are also still digesting Moody's lowering its outlook on the US credit rating to "negative" from "stable" on Friday, citing large fiscal deficits and a decline in debt affordability.