Australian shares to start lower ahead of overseas data
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The news: The Australian sharemarket is set to start lower despite a mixed result on Wall Street with traders in cautious mode ahead of key inflation data in both the US and China.
The numbers: The Dow Jones index ended 0.31% lower, but both the S&P 500 and the tech-heavy Nasdaq finished at fresh record highs, adding 0.27% and 0.88% respectively. In the local market, ASX 200 futures were down 36 points or 0.46% at 7,727 points at 7:00am AEST on Wednesday.
The context: The S&P 500 and the Nasdaq rose on the back of a jump in Apple shares after the tech giant unveiled new artificial intelligence features meant to increase the appeal of its devices.
However, investors also awaited consumer prices data and a policy announcement from the US Federal Reserve, both to be released later on Wednesday.
The central bank is likely to leave interest rates unchanged but will release its updated economic projections and "dot plot", which shows where policymakers expect interest rates to stand this year and longer-term. Markets have dialled back expectations for the Fed's first rate cut happening in September, now pricing in about a 50% chance.
In the local market, investors will also await monthly inflation data from China later on Wednesday that is likely to weigh on the economic prospects of Australia’s biggest trading partner.
The source: Reuters
