Australian shares set to track gains on Wall Street
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The news: The Australian sharemarket is set to open higher as investors take cues from broad based gains on Wall Street before the focus turns to the Reserve Bank’s rate decision later in the session.
The numbers: The Dow Jones index ended 0.49% higher, while the broader S&P 500 climbed 0.77% and the tech-heavy Nasdaq advanced 0.95%. In the local market, ASX 200 futures were up 29 points or 0.38% to 7,743 points at 7:00am AEST on Tuesday.
The context: US stocks rose on the back of gains in technology and consumer discretionary shares as traders looked to speeches from Federal Reserve officials and economic data later this week for clues on monetary policy.
The Fed will be able to cut its benchmark interest rate once this year, Philadelphia Fed president Patrick Harker said, if his economic forecast plays out. Fed board governor Lisa Cook is due to speak later.
This week's economic roster includes May retail sales data, followed by industrial production, housing starts and the S&P flash purchasing managers' index. The Fed has pushed out the start of rate cuts but markets still expect about two 25-basis-point cuts this year.
In the local market, investors will be focused on the RBA decision on interest rates at 2:30pm with the central bank’s commentary expected to remain hawkish amid still elevated inflation and a tight job market.
The source: Reuters
