Australian shares set to slip after Wall Street pullback
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The news: The Australian sharemarket is set to open lower following a dip on Wall Street amid a lack of market-moving catalysts ahead of the Jackson Hole Economic Symposium.
The numbers: The Dow Jones index ended 0.15% lower, while the broader S&P 500 lost 0.20% and the tech-heavy Nasdaq dropped 0.33%. In the local market, ASX 200 futures were down 44 points or 0.55% at 7,897 points at 7am AEST on Wednesday.
The context: All three major US stock indices edged down, ending a multi-session rally in which the equities market bounced back from a steep sell-off driven by recession fears.
Representatives from central banks around the globe are expected to converge in Jackson Hole, Wyoming on Thursday for their annual Economic Symposium at which US Federal Reserve Chair Jerome Powell is expected to deliver remarks on Friday. Powell's speech will be parsed by market participants for hints regarding the number and timing of expected policy rate cuts this year and next.
Financial markets are currently pricing in a 69.5% likelihood of a 25 basis-point reduction of the Fed funds target rate in September, with a 30.5% chance of a super-sized cut of 50 basis points, according to CME's FedWatch tool.
In the local market, traders will be focused on earnings reports from Santos, Brambles, Wisetech and Bapcor among others.
The source: Reuters
