Australian shares to start higher after mixed Wall Street session
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The news: The Australian sharemarket is set to open slightly higher, in line with mixed results on Wall Street where investors stayed on the sidelines ahead of a key labour market report.
The numbers: The Dow Jones index ended 0.20% higher, but the broader S&P 500 edged 0.02% lower and the tech-heavy Nasdaq settled 0.09% down. In the local market, ASX 200 futures were up 18 points or 0.23% at 7,852 points at 7:00am AEST on Friday.
The context: Both the S&P 500 and Nasdaq indexes reached fresh intraday record highs before retreating as technology stocks dipped. Investors stayed cautious ahead of Friday's crucial US nonfarm payrolls report that could indicate the Federal Reserve’s path to cutting interest rates.
That sentiment was bolstered by the European Central Bank delivering its first interest rate cut since 2019. Traders now see a 68% chance of a September rate reduction by the Fed and have priced in two cuts this year.
In the local market too, investors are likely to maintain cautious sentiment ahead of a market holiday on Monday.
The source: Reuters
