Downbeat start likely for ASX, RBA to hold rates

The news: Shares on the ASX are expected to fall once trading gets under way on Tuesday, despite analysts forecasting there will be no change to rates from the Reserve Bank later today.

In late trading in the US, big technology stocks have led markets lower. Investors appear cautious prior to employment data due this week that could alter expectations that the Federal Reserve will cut interest rates early next year.

The numbers: The Dow Jones was lower by 56 points, or 0.16%, to 36,188. The broader S&P 500 index was down 31 points, or 0.68%, to 4,563. The technology focused Nasdaq had slipped by 165 points, or 1%, to 14,139. On the domestic market, the ASX 200 futures was down 35 points to 7109. The Aussie dollar was lower and buying 66.16 US cents.

The context: The Reserve Bank is widely expected to keep rates on hold when it makes its December decision after a surprisingly weak monthly inflation read. Headline inflation grew 4.9% in October, down from 5.6% in September.