Australian shares to start lower after mixed Wall Street session
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The news: The Australian sharemarket is set to start lower amid cautious sentiment after a mixed session on Wall Street and commodity price falls.
The numbers: The Dow Jones index ended 0.30% lower while the broader S&P 500 gained 0.11% and the tech-heavy Nasdaq added 0.56%. In the local market, ASX 200 futures were down 12 points or 0.15% at 7,769 points at 7:00am AEST on Tuesday.
The context: US stocks wavered through a choppy session that included a glitch on the NYSE, which caused a brief trading halt in some shares.
Investors also weighed data showing US manufacturing activity had slowed for the second straight month, raising concerns of weakening economic growth. It promoted a fall in benchmark US 10-year note yields to a two-week low. Traders now see a 59% chance that the Fed will begin cutting rates in September, up from about 53% before the data release.
Investors will be eyeing a data-packed week that includes surveys on the services sector, factory orders and Friday's closely watched nonfarm payrolls report, which could provide clues to the Fed's likely course of action with regards to rates.
The source: Reuters
