Australian shares to open higher after Wall Street gains
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The news: The Australian sharemarket is poised to start higher after overnight gains on Wall Street where investors focused on the Democratic National Convention and the upcoming Jackson Hole Economic Symposium.
The numbers: The Dow Jones index ended 0.58% higher, while the broader S&P 500 rose 0.97% and the tech-heavy Nasdaq advanced 1.39%. In the local market, ASX 200 futures were up 36 points or 0.45% at 7,963 points at 7am AEST on Tuesday.
The context: US stock indices extended their winning streak with help from Nvidia, Microsoft and Alphabet, building on the US stock market's biggest weekly gains of the year.
Recent data has shown consumer resilience despite economic softening, boosting expectations that the US Federal Reserve will start lowering interest rates at its September policy meeting by cutting the target rate by 25 basis points. A slim majority of economists polled by Reuters say the Fed will implement three 25-basis-point rate cuts by the end of the year, and the economy will probably be able to avoid recession as inflation abates.
The Jackson Hole Economic Symposium kicks off on Thursday, and Fed Chair Jerome Powell's remarks on Friday will be parsed for clues regarding the US central bank's path from restrictive to neutral monetary policy.
In the local market, traders will be focused on earnings reports from ANZ, Ansell, Dexus and Ingenia among others.
The source: Reuters
