Australian shares are poised to extend their losses and follow the direction of stocks in the United States, which dipped overnight as investors awaited American inflation data.
Futures trading indicated the benchmark S&P/ASX 200 Index would open weaker with the share price index (SPI) futures quoted 27 points (0.3%) lower at 8,409 at 9:40 am (AEDT).
This followed a softer night on Wall Street where indices dropped on profit taking and as the market looked toward important consumer price index (CPI) data that is likely to determine the direction of interest rates in the world’s largest economy.
The Dow Jones Industrial Average lost 0.4% and the S&P 500 and Nasdaq Composite 0.3% each.
U.S. CPI data for November is scheduled to be published on Wednesday (U.S. time).
The Australian share market ended 0.4% lower at a two-week low on Tuesday after the Reserve Bank of Australia (RBA) left official interest rates on hold.
The RBA expressed growing confidence that inflation was moving sustainably toward its target and removed previous language suggesting the possibility of further rate rises.
On fixed interest markets, Australian Government bond prices followed shares down with yields rising on 10-year and 2-year paper to 4.162% (up 0.1%) and 3.782% (0.2%) respectively.