Australian shares set to tread water ahead of GDP data
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The news: The Australian sharemarket is set to trade in a narrow range ahead of quarterly GDP data despite major indices on Wall Street ending slightly higher.
The numbers: The Dow Jones index ended 0.36% higher while the broader S&P 500 gained 0.15% and the tech-heavy Nasdaq added 0.17%. In the local market, ASX 200 futures were down just 4 points or 0.05% at 7,751 points at 7:00am AEST on Wednesday.
The context: US stocks pared early losses following softer-than-expected labour market data that reaffirmed expectations of an interest rate cut by the Federal Reserve.
Data showed that US job openings fell to their lowest level in more than three years in April, signalling an easing in labour market tightness, the latest in a string of recent reports that pointed to cooling US economic growth.
US Treasury yields slipped following the report and market expectations for a September rate cut now stand around 65%, versus below 50% last week, according to the CME's FedWatch tool. The closely watched non-farm payrolls data for May is due on Friday.
In the local market, investors will be focused on March quarter GDP numbers, due at 11:30am. The data is largely expected to show slowing economic growth.
The source: Reuters
