Australian shares are set to open lower, with the Nvidia-led rally stalling on Wall Street.

ASX futures were down less than 0.1% or 4 points as of 8:30am on Tuesday, suggesting a slightly lower open.

U.S. stocks took a break from last week's rally with the main indexes closed in the red, although Nvidia kept climbing.

The S&P 500 fell 0.4% to 5070, the DJIA slipped 0.2% to 39069 and the Nasdaq Composite lost 0.1% to 15976.

In commodity markets, Brent crude oil rose 1.3% to US$82.65 a barrel, while gold was up 0.2% at US$2,032.39.

In local bond markets, the yield on Australian 2 Year government bonds was down at 3.80% while the 10 Year yield was also down at 4.10%. US Treasury notes were up, with the 2 Year yield at 4.72% and the 10 Year yield at 4.28%.

The Australian dollar hit 65.33 US cents down from its previous close of 65.62. The Wall Street Journal Dollar Index, which tracks the US dollar against 16 other currencies, was down at 98.42.


Chinese shares ended mixed, as investors weighed the potential for more stimulus against concerns about the effectiveness of current attempts to shore up the economy. China PMI data this week will be watched for signs of recovery, with talk already turning to Beijing's annual plenary sessions next month amid hopes authorities will roll out more support. Telcos were among the day's decliners, with China Telecom and China Mobile 3.0% and 1.45% lower, respectively. BYD rose 1.8% after proposing to double its share buyback. Other gainers included Great Wall Motor, which added 3.4%, and WuXi AppTec, which gained 2.0%. The benchmark Shanghai Composite Index fell 0.9% to finish at 2977.02. The Shenzhen Composite added 0.4%, while the ChiNext Price Index lost 0.4%.

Hong Kong's Hang Seng Index fell 0.5% to close at 16634.74, paring losses from the mid-day break but failing to return to positive territory after giving up slight early gains. Hong Kong stocks seemed directionless, with market focus on upcoming corporate results and China economic data, says Sonija Li, Maybank's head of retail research. The effectiveness of China's efforts to stabilize the market and boost the economy continue to be on investors' minds. Chinese equities had a mixed session. The biggest losers on the Hang Seng included retailer Li Ning, which fell 3.8%, logistics company Orient Overseas (International), which shed 2.6%, and Zijin Mining, which lost 2.4%. The Hang Seng Tech Index closed 0.2% lower at 3393.29.

The Nikkei Stock Average rose 0.3% to close at a new record high of 39233.71, led by retail stocks on growing hopes for industry consolidation. Tsuruha Holdings soared 11% and Welcia Holdings added 17% following news that Welcia's parent Aeon is considering a merger of the two drugstore operators. Aeon gained 2.5%. The 10-year Japanese government bond yield fell three basis points to 0.685%. Investors are focusing on economic data and their policy implications. USD/JPY was at 150.45, compared with 150.51 late Friday in New York.

Indian stocks lost ground for a second consecutive trading day, with traders cautious amid regional declines and with domestic GDP print looming. Most Sensex constituents finished in the red, as focus shifted from earnings to global economic data and rate signals. Asian Paints shed 3.9%, Tata Steel fell 2.0% and Tech Mahindra lost 1.8%. Among the few gainers, Larsen & Toubro added 2.4% after winning a railway contract in Jakarta and Power Grid Corp. of India rose 2.0%. The benchmark Sensex closed 0.5% lower at 72790.13, trimming year-to-date gains to 0.8%.


The pan-European Stoxx Europe 600 index fell 0.4% to 495.20 in late trade, reversing some of last week's gains when excitement over stellar earnings from AI giant Nvidia sent it and other stock indexes to record highs. "There is not yet any real threat that could reverse the growing appetite for risk from investors, and today's move seems to be primarily due to profit-taking moves following the newly established record level by the European benchmark," says ActivTrades analyst Pierre Veyret in a note. Trade could turn cautious ahead of key U.S. PCE data on Thursday and eurozone inflation figures on Friday. France's CAC 40 fell 0.5%, the FTSE 100 lost 0.6% while Germany's DAX is steady.

The FTSE 100 index closed down 0.6% at 7,684.30 points, dragged by online grocer and retail-technology specialist Ocado and falling commodity prices. "The week has gotten off to a poor start in London, on an otherwise quiet day for corporate news," IG Chief Market Analyst Chris Beauchamp said in a market comment. "Ocado looks to be vulnerable to more selling as investors digest the impact of a spat with key partner Marks & Spencer, while a four-month low in iron ore and a major reversal in copper prices seems to spell more pain ahead for mining stocks," he said.

North America

U.S. stocks took a break from last week's rally with the main indexes closed in the red, although Nvidia kept climbing.

The S&P 500 fell 0.4% to 5070, the DJIA slipped 0.2% to 39069 and the Nasdaq Composite lost 0.1% to 15976.

The chip maker rose just half of a percentage point, extending its gains this year to around 60%.

Palo Alto Networks rose 7%, partially recovering from the beating taken after disappointing guidance issued last week.

Domino's Pizza gained 6% following higher-than-expected earnings.