Australian shares are expected to open higher on Wednesday, with investors eyeing the release of the country’s latest consumer price index (CPI) data, which will provide crucial insights into the current state of inflation.
By 7 am, ASX 200 futures were up by 0.3%.
Overnight, U.S. equities saw modest gains, led by the Nasdaq Composite. Commodities advanced on news of China’s renewed efforts to stimulate its economy, while the VIX volatility index continued its decline, falling nearly one-third over the past month.
The Dow Jones Industrial Average rose 0.2%, the S&P 500 added 0.3%, and the Nasdaq climbed 0.6%. The S&P 500 also notched its 41st all-time high this year. Shares of BHP and Rio Tinto, which are listed in the U.S., surged 5.1% and 4.4%, respectively.
Mining stocks led the gains, driven by advances in copper and lithium prices. Southern Copper rose 7.2%, Albemarle added 2%, and Arcadium climbed 3%.
Tech giant Nvidia saw its shares jump 4% following reports that CEO Jensen Huang has completed planned stock sales. Nvidia’s market capitalisation is approaching $3 trillion again, though the stock remains below its August peak.
In Australia, the highly anticipated monthly CPI data is due for release at 11:30 am AEST. Economists are expecting annual inflation to dip to 2.7%, down from the previous figure of 3.5%.
Among local companies, AGL Energy and Red 5 are holding their Annual General Meetings (AGMs), while KMD Brands and Sigma Healthcare are set to release earnings updates.
On the bond markets, 10-year and 2-year rates were at 3.88% and 3.484%, respectively.