Australian shares to start ahead after Wall Street edges higher
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The news: The Australian sharemarket is set to start higher after two of the three main stock indices on Wall Street clung on to gains to end in positive territory.
The numbers: The Dow Jones index ended 0.08% higher, marking its longest positive run since December, while the broader S&P 500 gained 0.13%. The tech-heavy Nasdaq lost 0.10%. In the local market, ASX 200 futures were up 14 points or 0.18% at 7,828 points at 7:00am AEST on Wednesday.
The context: US stocks advanced, extending recent winning streaks fueled by renewed expectations that the Federal Reserve will cut interest rates this year.
The benchmark performances came despite Walt Disney shares slumping nearly 10% in their biggest percentage fall since November 2022.
The Fed and policymakers have been consistent in their message in recent weeks that rate cuts will come but the central bank is going to be cautious in implementing them.
Overall, last week's payrolls data and better-than-expected earnings reports have helped soothe investor jitters around sticky inflation and a robust economy that have kept the rates elevated. Traders are anticipating rate cuts of 46 basis points from the Fed by the end of 2024, with the first pivot to rate cut seen in September and another in December.
The source: Reuters
