The Australian sharemarket is expected to start trading about 0.4% lower on Tuesday despite record highs on Wall Street.
Futures dealings on the Australian Securities Exchange (ASX) quoted the December share price index contract of the S&P/ASX 200 index 39 points under the previous settlement at 9,052 points, at the time of writing.
Stocks posted record closing highs in New York overnight as hopes increased for a trade deal between the United States in a week marked by high-profile technology company earnings and a widely expected U.S. interest rate cut.
The Dow Jones Industrial Average added 0.71%, the S&P 500 climbed 1.23% and the Nasdaq Composite surged 1.86% on Monday (Tuesday AEDT).
U.S. President Donald Trump and Chinese leader Xi Jinping are due to meet on Thursday for trade talks, which may lead to a pause on higher U.S. tariffs and Chinese rare-earth export restrictions.
Earnings from some of the so-called Magnificent Seven tech giants will be published this week with a sharp focus on artificial intelligence (AI) capital expenditure.
“With five of the Mag Seven reporting this week, what the market expects to hear is confirmation that all this AI capex is coming through, that the revenues and profits from AI are coming through," Wells Fargo Investment Institute Senior Global Market Strategist Scott Wren was quoted in a Reuters story as saying.
The Australian sharemarket had closed higher on Monday with the S&P/ASX 200 putting on 0.4% to 9,055.6 points.
Companies to keep an eye on today are CSL (ASX: CSL), which hosts an annual general meeting, and Liontown Resources (ASX: LTR), Nickel Industries (ASX: NIC) and Westgold Resources (ASX: WGX), which lodge quarterly reports.
Australian Government yields rose across the curve with two-year rates gaining 0.230 to 3.428% and 10-year rates adding 0.29% to 4.180%, at the time of writing.
