Australian shares to start higher after mixed Wall St session

The news: The Australian sharemarket is likely to open slightly higher despite cautious sentiment prevailing on Wall Street after robust US economic data revived concerns about interest rates.

The numbers: The Dow Jones index eked out gains of 0.04%, while the broader S&P 500 edged 0.01% lower and the tech-heavy Nasdaq lost 0.25%. In the local market, ASX 200 futures were trading 20 points or 0.28% higher at 7100 points at 0700 AEDT on Wednesday.

The context: US stocks reversed earlier gains as Treasury yields rose after data showed US retail sales increased more than expected in September as households stepped up purchases of motor vehicles and spent more at restaurants and bars. A separate reading showed production at US factories increased more than expected in September. Investors bet this could prompt the Federal Reserve to leave interest rates higher for longer, and possibly push out expectations for rate cuts in 2024. In the local market, traders will focus attention on comments from RBA Governor Michelle Bullock at a summit.