Australian shares to edge higher amid mixed cues from Wall Street

The news: The Australian sharemarket is set to edge higher in early trading despite a mixed close for the major US indices on Friday where weaker bank results offset positive news on inflation.

The numbers: The Dow Jones index ended 0.31% lower on Friday, while the broader S&P 500 edged 0.08% higher and the tech-heavy Nasdaq added 0.02%. In the local market, ASX 200 futures were trading just 5 points or 0.07% higher at 7470 points at 7:00am AEDT on Monday.

The context: On Friday, data showed US producer prices unexpectedly fell in December, while prices for services were unchanged, which sent Treasury yields lower and boosted expectations for an early rate cut by the US central bank. However, sentiment was dampened somewhat after Bank of America’s fourth-quarter profit shrank, Citigroup reported a fourth-quarter loss, and Wells Fargo warned of a drop in net interest income in 2024.