Australian shares to start lower ahead of RBA rate decision
Make us a preferred source
Make us a preferred source on Google
The news: The Australian sharemarket is poised to start lower after a lacklustre session on Wall Street, with local investors focused on the Reserve Bank’s rate decision this afternoon.
The numbers: The Dow Jones index ended 0.15% higher, while the broader S&P 500 gained 0.28% and the tech-heavy Nasdaq added 0.14%. In the local market, ASX 200 futures were down just 9 points or 0.11% to 8,196 points at 7am AEST on Tuesday.
The context: US stocks were subdued as investors scouted for trends in the week following the Federal Reserve’s rate cut.
The modest gains came amid comments from Fed policymakers and steady factory activity data, building on last week's sharp market rally after the central bank's decision.
Fed officials including Raphael Bostic, Neel Kashkari and Austan Goolsbee supported the last rate cut and have voiced support for more cuts in the rest of the year, while markets are expecting a total reduction of 74 basis points by year-end.
On the data front, US business activity remained steady in September, while average prices for goods and services increased at the fastest pace in six months, potentially signalling a rise in inflation in the months ahead.
In the local market, investor attention will be on the RBA’s rate decision later on Tuesday, with the central bank widely expected to keep the cash rate on hold at 4.35%.
The source: Reuters
