Australian shares set to start lower after mixed Wall St session

The news: The Australian sharemarket is set to start on the back foot, after major indices on Wall Street ended mixed with investors cautious ahead of key company earnings and economic data this week.

The numbers: The benchmark Dow Jones index fell 0.58% and the broader S&P 500 ended 0.17% lower while the tech-heavy Nasdaq rose 0.27% buoyed by companies slated to post third quarter-results this week. In the local market, ASX 200 futures were trading 15 points or 0.22% lower at 6842 points at 0700 AEDT on Tuesday.

The context: Overnight, benchmark US Treasury yields backed down from 5% and investors shifted their focus to this week's high profile earnings, which include Microsoft, Meta, Alphabet, Amazon, General Motors and Ford. Investors will also be closely watching data on US third quarter GDP and Personal Consumption Expenditure later this week. In the local market, all the focus will be speech by RBA Governor Michelle Bullock late on Tuesday.

What they said: "The story continues to be about interest rates, and to some extent switching from 'higher for longer' to 'how much higher for how much longer?'" Oliver Pursche, senior vice president at Wealthspire Advisors in New York told Reuters. "The market has accepted the idea that the Fed is not going to lower rates any time soon."