Australian shares set to slip, tracking losses on Wall Street
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The news: The Australian sharemarket is set to drop in early trading, tracking a subdued session on Wall Street, where investors continued to focus on the likely path for interest rates.
The numbers: The Dow Jones index closed 0.42% lower, the broader S&P 500 lost 0.29% while the tech-heavy Nasdaq slipped 0.27%.
In the local market, ASX 200 futures were down 29 points or 0.37% at 7,836 points at 7:00am AEDT on Tuesday.
The context: All three major US indices slipped after posting their biggest weekly percentage gains so far this year, as investors focus on interest rates ahead of key inflation data due later in this holiday-shortened week.
Expectations for a Fed rate cut in June have increased, with markets now pricing in a 71.9% chance for a cut of at least 25 basis points, according to CME's FedWatch Tool, up from around 54.7% a week ago.
The February reading of the personal consumption expenditures price index, the Fed's preferred inflation gauge, is due on Friday, when US markets will be shut for the Good Friday holiday.
The source: Reuters
