The Australian sharemarket is set to start modestly higher on Tuesday as traders anticipate the Reserve Bank of Australia's (RBA) first interest rate cut in five years.
By 8 am AEDT (9 pm GMT) ASX futures rose 21 points, or 0.2%, indicating a potential rebound after the index lost 0.2% in the previous session.
The RBA is widely expected to lower the benchmark rate by 25 basis points on Tuesday afternoon.
Market participants will closely follow Governor Michelle Bullock’s press conference for insights into the central bank’s approach to inflation risks, as domestic inflation remains above the 2.5% mid-point target.
Investors are also digesting a fresh slew of corporate earnings reports, with mining giant BHP reporting a 23% drop in first-half profit from the year before as well as its lowest interim dividend in eight years.
Meanwhile, Challenger posted a 12% rise in net profit after tax to $225 million for the first half of the 2025 financial year.
HMC Capital posted record results, as the company saw its assets under management climb 45% to $18.5 billion, driven by strong private equity performance and the IPO of its DigiCo Infrastructure REIT.
Global market sentiment remained mixed. While U.S. markets were closed for Presidents' Day, European bond yields climbed, and shares in defence companies rallied as Europe faces a shifting security landscape.
Meanwhile, U.S. and Russian officials are set to meet in Saudi Arabia on Tuesday, marking the beginning of potential discussions on ending Russia’s war in Ukraine. However, neither European nor Ukrainian representatives were invited to the talks.
On the bond markets, U.S. 10-year and 2-year yields were up 0.8% and 1.1% at 4.446% and 3.856%, respectively.