ASX tipped to open up as market awaits key inflation data

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The local sharemarket is expected to look past a downbeat session in the US, as investors await the latest read on how inflation is tracking in Australia.

The Australian sharemarket is tipped to open in positive territory after another mixed session on Wall Street, with local investors eagerly awaiting the latest read on how inflation is tracking in Australia and what it means for interest rates.

Iron ore futures had slipped below $US99.30 in Singapore trading. While, the Australian dollar was trading around US65.36c. In the US, the world’s largest technology companies had another poor session, as they extended their losses after the latest quarterly results from software giant Microsoft fuelled concerns that the artificial-intelligence frenzy might be running out of steam.

If the Fed is about to begin a rate reduction cycle, stock bulls have history on their side. In the six prior hiking cycles, the S&P 500 has risen an average 5 per cent a year after the first cut, according to calculations by the financial research firm CFRA. What’s more, the gains also broadened, with the small-cap Russell 2000 Index climbing 3.2 per cent 12 months later, the data show.

 

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