Australian shares set to slip after steady Wall Street session
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The news: The Australian sharemarket is set to open slightly lower as investors await cues with Wall Street ending barely higher in a subdued trading session.
The numbers: The Dow Jones index ended 0.15% higher, while the broader S&P 500 rose 0.25% and the tech-heavy Nasdaq eked out gains of 0.03%. In the local market, ASX 200 futures were down just 8 points or 0.1% to 7,775 points at 7:00am AEST on Wednesday.
The context: Two of the three main US indices closed at record highs, largely buoyed by chip stocks, despite the market trading in a narrow range through the session following mixed economic data.
US retail sales rose 0.1% in May, versus the 0.3% growth forecast by economists, while another report showed surprisingly strong May industrial production and manufacturing output. Following the news, markets slightly increased bets on two Federal Reserve interest rate cuts this year, despite US central bankers' most recent projections for just one easing.
Hopes for multiple rate cuts this year, excitement for AI-related companies and robust earnings from other tech firms have bolstered equities in recent months, with gains concentrated in a few heavily weighted stocks.
US markets will be closed on Wednesday for the Juneteenth holiday.
The source: Reuters
