Australian shares to rise after mixed Wall Street session
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The news: The Australian sharemarket is set to start higher after fresh gains for two of the three major indices on Wall Street ahead of key US economic data.
The numbers: The Dow Jones index ended 0.08% lower, the broader S&P 500 gained 0.10% while the tech-heavy Nasdaq advanced 0.28%. In the local market, ASX 200 futures were up 22 points or 0.28% at 7,771 points at 7:00am AEST on Tuesday.
The context: The S&P 500 and Nasdaq notched fresh record-high closes as investors await fresh inflation data, commentary from Federal Reserve chair Jerome Powell and the start of quarterly earnings season.
Traders will scrutinise consumer price data due on Thursday and producer price data expected on Friday to gauge the Fed's progress in fighting inflation.
Investors will also closely monitor Powell's semiannual testimony before US Senate and House committees on Tuesday and Wednesday amid worries that waiting too long to cut interest rates could damage the labour market and push the US economy into a recession.
Traders now see a greater than 75% chance of a rate cut of at least 25 basis points by September, up from last week's 60%, according to CME's FedWatch.
The source: Reuters
