The Australian sharemarket is set for a modestly lower open on Thursday following a mixed session on Wall Street, as softer United States inflation boosted risk-sensitive technology stocks and reduced expectations of a September interest rate hike.
S&P/ASX 200 futures were down 24 points, or 0.3%, at 9,128.
The U.S. consumer price index (CPI) rose 0.1% in July from the previous month and increased 3.4% annually.
"The numbers came in right in line. The market's reaction is slightly positive because the market was fearful it was going to come in worse than it did. You're seeing a market thinking that the Fed is not being pushed toward a rate hike," Robert Pavlik, senior portfolio manager at Dakota Wealth in Fairfield, Connecticut, was quoted as saying in a Reuters story.
Traders are now pricing in a 59.9% chance of the Federal Reserve holding rates at its September meeting, according to the CME Group FedWatch Tool.
The Australian sharemarket finished Wednesday’s session lower as investors digested a series of local earnings results.
The S&P/ASX 200 fell 41.20 points, or 0.5%, to 9,209.4, with nine of the 11 sectors ending in negative territory.
In Thursday’s trade, investors will be monitoring results from ASX, Insurance Australia Group, Orora, Origin Energy, Transurban, Telstra and Treasury Wine Estates.
On the bond markets, 10-year and 2-year rates were down 0.3% and 0.6% at 4.985% and 4.563%, respectively.
