Australian shares are set to open lower on Tuesday, tracking weakness on Wall Street overnight as escalating tensions in the Middle East pushed oil prices sharply higher and weighed on global risk sentiment.
Futures for the S&P/ASX 200 were down 70 points, or 0.8%, to 8,645, signalling a weaker start after the local market fell 0.4% on Monday, with eight of the 11 sectors ending in negative territory.
The cautious tone follows declines in United States markets overnight, where major benchmarks retreated from recent highs.
The Dow Jones Industrial Average dropped 1.1%, while the S&P 500 fell 0.4% and the Nasdaq Composite slipped 0.2%.
Looking ahead, investor focus will turn to the Reserve Bank of Australia’s monetary policy decision, due at 2.30 pm AEST (4:30 am GMT), alongside the release of updated economic forecasts.
Market participants will be closely watching for any signals on the interest rate outlook amid persistent inflation concerns.
Monthly household spending data from the Australian Bureau of Statistics (ABS) is also scheduled for release at 11.30 am AEST.
On the earnings front, results are expected from Westpac, Dexus and Vicinity Centres in Australia.
On the bond markets, Australian government bond yields edged lower, with the 10-year yield down 0.2% to 5.012% and the 2-year yield falling 0.7% to 4.705%.
