Australian shares are set to open lower, with following Wall Street's sharp pullback after a series of record highs. The US market, which has seen relentless gains, finally showed signs of cooling, with the S&P 500 retreating from nearly overbought levels.
By 7:00 am AEDT (8:00 pm GMT) ASX futures were down 69 points, or 0.8%.
In the U.S., major benchmark averages closed mixed as investors braced for further earnings results this week. The Dow Jones fell 0.8% to 42,931.6, the S&P 500 eased 0.2% to 5,854, while the Nasdaq Composite added 0.3% to 18,540.
Among individual companies, WiseTech Global remains in the spotlight after billionaire founder Richard White sold hundreds of millions of dollars worth of shares, reportedly to settle payments to his ex-wife.
Shares in WiseTech plummeted nearly 15% on Monday.
In the bond markets, yields remained elevated, with the 10-year Treasury rate at 4.374% and the 2-year rate at 3.937%.