Australian shares set to rise after Wall Street gains
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The news: The Australian sharemarket is set to open higher, tracking gains on Wall Street amid bargain hunting after the previous week’s sell-off.
The numbers: The Dow Jones index ended 1.20% higher, while the broader S&P 500 gained 1.16% and the tech-heavy Nasdaq also added 1.16%. In the local market, ASX 200 futures were up 78 points or 0.97% at 8,043 points at 7am AEST on Tuesday.
The context: All three major US indices rose overnight as investors looked for bargains while also awaiting inflation reports in coming days and the US Federal Reserve's next policy decision next week. Investors had fled from equities last week amid jitters about the US economy's health ahead of the rate decision.
This week's key events include the consumer price index (CPI) report due Wednesday, a day after the first debate between US presidential candidates Democrat Kamala Harris and Republican Donald Trump ahead of the 5 November election.
The CPI report is expected to show a moderation in headline inflation in August to 2.6% on a yearly basis, while on a monthly basis it is expected to remain unchanged at 0.2%. It will be followed by producer prices data on Thursday.
The source: Reuters
