Australian shares are set to edge lower at the open. Shares were broadly lower on Wall Street with investors awaiting more earnings reports and guidance from the Federal Reserve on the rate outlook.

Fed policymakers began a two-day meeting on Tuesday (Wednesday AEST). A statement will be released at 4am AEST on Thursday. While rates are expected to be held, investors are keen to see if chairman Jerome Powell has begun to lean towards a rate cut at the next meeting in September.

Here, it’s monthly CPI data day. The report “could validate market pricing for a 25 basis points rate cut at the bank’s August 12th meeting”, Scotiabank’s Derek Holt said in a note.

Wednesday marks the first ‘busy’ reporting day with Rio Tinto set for release at 4.15pm AEST. Earlier in the day, Atlas Arteria Group, Champion Iron, Pilbara Minerals and Mineral Resources are on deck.

Market highlights

ASX futures are pointing down 11 points or 0.1 per cent to 8658.
All US prices are near 4.30pm New York time.

AUD -0.1% to US65.12¢Bitcoin -0.4% to $US117,450On Wall St: Dow -0.5% S&P -0.3% Nasdaq -0.4%VIX +0.95 to 15.98Gold +0.3% to $US3325.91 an ounceBrent oil +4% to $US72.84 a barrelIron ore +2.1% to $US102.95 a tonne10-year yield: US 4.32% Australia 4.32%Today’s agenda

For local investors, the monthly CPI data to be released at 11.30am is in focus. TD Securities: “We expect headline and trimmed mean CPI to print at 2.1 per cent year-over-year (consensus: 2.2 per cent) and 2.6 per cent y/y (cons: 2.7 per cent) respectively. This is below consensus forecasts but in line with the RBA’s May forecasts.”

Later on Wednesday, there will be GDP reports from Germany, France, the EU and the US. There will also be more private payroll data from the US, with labour market’s strength rising on economists’ radar screens. Policymakers meet at the Bank of Canada with a hold decision expected at 11.45pm, as Canada awaits a tariff letter from the US.

The Fed decision will arrive at 4am AEST on Thursday with Jerome Powell’s press conference starting at 4.30am.

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