Wall Street, RBA meeting to weigh on Australian shares
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The news: The Australian sharemarket is set to start lower with investors cautious after a mixed close on Wall Street on Friday and as the focus turns to the Reserve Bank’s two-day policy meeting.
The numbers: The Dow Jones index ended 0.15% lower on Friday, with the broader S&P 500 also down 0.04% while the tech-heavy Nasdaq eked out gains of 0.12%. In the local market, ASX 200 futures were down 17 points or 0.22% to 7,717 points at 7:00am AEST on Monday.
The context: The Nasdaq notched a fresh closing high on the back of gains in Adobe and other technology-related shares, but the other two main indexes ended lower with investors still trying to gauge how soon the Federal Reserve might be able to cut interest rates.
Data earlier in the week showed US inflation in May had cooled, but Fed policymakers dialled back their projections for three cuts this year to just one. On Friday, fresh data showed US consumer sentiment fell lower than expected in June.
In the local market too, investors' focus remains on the path for interest rates as the RBA begins its two-day meeting on Monday. The central bank is widely expected to leave rates on hold but the market remains focused on likely hawkish commentary from governor Michele Bullock amid continuing high inflation and a tight job market.
The source: Reuters
