Australian shares set to start higher, inflation in focus
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The news: The Australian sharemarket is set to start higher ahead of key inflation data, tracking solid gains on Wall Street overnight.
The numbers: The Dow Jones index ended 0.69% higher, while the broader S&P 500 gained 1.20% and the tech-heavy Nasdaq added 1.59%. In the local market, ASX 200 futures were up 27 points or 0.35% at 7725 points at 7:00am AEST on Wednesday.
The context: US stocks closed higher following positive earnings from top-tier companies, with Tesla kicking off the earnings cycle for technology heavyweights after markets closed.
Other tech majors set to report this week include Microsoft, Alphabet, and Meta Platforms.
Data on Tuesday showed US business activity cooled in April to a four-month low due to weaker demand, while rates of inflation eased slightly even as input prices rose sharply, suggesting possible relief ahead for rising consumer prices.
Investors will be eyeing the release of the March Personal Consumption Expenditures index — the Federal Reserve's preferred inflation gauge — on Friday. In the local market too, investors will be focused on quarterly inflation data, due to be released at 11:30am AEST.
The source: Reuters
