Australian shares to start lower after Wall Street decline

The news: The Australian sharemarket is set to start lower, tracking losses on Wall Street where economic data and a speech by the Federal reserve chair added to concerns about interest rates.

The numbers: The Dow Jones index fell 0.76%, the broader S&P 500 lost 0.86% while the tech-heavy Nasdaq ended 0.97% lower. In the local market, ASX 200 futures were trading 45 points or 0.64% higher at 6941 points at 0700 AEDT on Friday.

The context: US stocks ended lower and Treasury yields surged after Fed Chair Jerome Powell indicated in a speech that the economy's strength and continued tight labour markets could warrant further rate hikes. It was underlined by data on Thursday showing the number of Americans filing new claims for unemployment benefits fell to a nine-month low last week., prompting renewed worried rates would stay higher for longer.