Australian stocks set to slip after weak close on Wall St

The news: The Australian sharemarket is poised to start lower after major US indices closed lower amid a focus on the two-day Federal Reserve policy meeting.

The numbers: The Dow Jones index fell 0.31%, the broader S&P 500 lost 0.22% and the tech-heavy Nasdaq dropped 0.23%. In the local market, ASX 200 futures were trading 16 points or 0.22% lower at 7184 points at 0700 AEST on Wednesday.

The context: Risk-off sentiment weighed on Wall Street with investors focused on any change in communication from the Federal Reserve. The policy meeting is expected to culminate in a rate hike pause, with a growing likelihood it will also stand pat in November. The Fed is also due to release its dot plot, which would provide a glimpse into the Federal Open Markets Committee's forecast trajectory of interest rates, inflation and economic growth.