Australian shares set to start new fiscal year on weak note
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The news: The Australian sharemarket is set to open lower, tracking a weak lead from Wall Street, with local investors also bracing for uncertainty over elections in Europe.
The numbers: On Friday, the Dow Jones index ended 0.11% lower, while the broader S&P 500 lost 0.41% and the tech-heavy Nasdaq dropped 0.71%. In the local market, ASX 200 futures were down 35 points or 0.45% to 7,737 points at 7:00am AEST on Monday.
The context: US stocks ended weaker on Friday as investors digested in-line inflation data and weighed political uncertainty after the first US presidential debate.
Data showed US monthly inflation was unchanged in May, an encouraging development after strong price increases earlier this year. Another report also showed consumer spending rose marginally last month, fuelling optimism that the US central bank could engineer a much-desired "soft landing" for the economy.
Bets on a rate cut in September rose to 66% after the personal consumption expenditures price index release, LSEG FedWatch data showed.
In the local market, investors are braced for market turmoil over election results this week in France and the UK. Traders are also focused on the minutes of the last RBA meeting that will be released on Tuesday, as well as monthly retail sales and building approvals data on Wednesday.
The source: Reuters
