Australian shares to start lower ahead of inflation data
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The news: The Australian sharemarket is set to open lower despite a positive session on Wall Street, as local investors stay cautious ahead of July inflation data and a spate of major earnings reports.
The numbers: The Dow Jones index ended just 0.02% higher, while the broader S&P 500 rose 0.16% and the tech-heavy Nasdaq also advanced 0.16% to a fresh record close. In the local market, ASX 200 futures were down 29 points or 0.36% to 7,996 points at 7am AEST on Wednesday.
The context: US stock indices ended higher, with the focus on a much-anticipated quarterly report later on Wednesday from Nvidia, the chipmaker at the centre of Wall Street's rally in AI-related stocks. Nvidia's shares climbed 1.5% and it was the most-traded company on the US stock exchanges.
Meanwhile, data showed US consumer confidence rose to a six-month high in August, while US consumers also became more anxious about the labour market after the unemployment rate jumped to near a three-year high of 4.3% last month.
Investors will look to July personal consumption expenditure data due on Friday for additional hints at the potential pace of rate cuts, with the market now betting on an interest rate cut of either 25 or 50 basis points in September.
In the local market, traders will be focused on July inflation data at 11:30am and earnings reports from Woolworths, Fortescue Metals, Nine Entertainment and Tabcorp among others.
The source: Reuters
