Australian shares are set to open higher, reflecting tentative optimism among investors as they await commentary on economic data and central bank decisions.
ASX futures were up 0.2% or 12 points to 7,227 this morning.
Data points released today
Key US inflation figures are due tomorrow while the Westpac consumer sentiment index and the National Australia Bank (NAB) business confidence data are both scheduled for release today.
Also on the agenda is Reserve Bank governor Michele Bullock's response to questions following her morning speech in Sydney, which marks one of her first public appearances since the decision to maintain the current interest rates. Her insights will set the scene for investors today.
Globally, investors are exercising caution. The Federal Reserve's upcoming meeting on Wednesday, while not expected to be controversial, will be closely watched – the decisions and insights from this meeting are critical for shaping market expectations for 2024 as this year draws to a close.
Uptick in US sentiment
In the US, sharemarkets have shown a positive trend. The S&P 500 was up 0.4%, the Nasdaq was up 0.2% and the Dow Jones added 0.4%.
This uptick reflects investor optimism in the run-up to the Federal Reserve's policy meeting and forthcoming US inflation data. Corporate developments, such as Cigna (NYSE:NYSE:CI)'s share buyback plan and Nike (NYSE:NKE)'s stock upgrade, have also influenced market movements.
European sharemarkets were mixed, with media stocks leading gains while miners experienced a downturn due to declining metal prices. This comes ahead of key interest rate decisions from the Federal Reserve, Bank of England and European Central Bank (ECB).
On the currency front, the Euro dipped from US$1.0777 to US$1.0741 and lingered near US$1.0765 at the US close, while the Australian dollar went from 65.50 US cents to 65.71 US cents and ended near 65.65 US cents.
Global oil prices saw slight upward movement due to crude oversupply despite OPEC+ cuts, with softer fuel demand growth expected next year.
Brent crude gained by 19 US cents or 0.3% to US$76.03 a barrel, while US Nymex crude was up 9 US cents or 0.1% to $71.32 a barrel.
Base metal prices slumped yesterday, with copper futures losing 1% and aluminium futures slipping 0.7% as speculative funds stepped up selling on expectations of rising inventories.
Gold futures fell by US$20.80 or 1% to US$1,993.70 an ounce and spot gold was trading near US$1,981 an ounce at the US close.
Iron ore futures slid 29 US cents or 0.2% to US$135.16 a tonne as investors eyed falling Chinese demand and unimpressive inflation data.
What’s happening in small caps?
The S&P/ASX Small Ordinaries closed at 2,765.85 yesterday, sliding -0.22% on the previous day.
Making news this morning, which you can read more about throughout the day with Proactive: