Australia

Australian shares are set to edge lower following a pullback on tech stocks on Wall Street.

ASX futures were down 21 points or 0.3% as of 8:00am on Wednesday, pointing to a slip at the open.

US stocks closed lower on Tuesday, with the Nasdaq Composite leading the way down, as Apple's unveiling of its new iPhone and watch failed to boost appetite for equities.

Technology stocks pulled the S&P 500 lower Tuesday after a disappointing forecast from Oracle damped enthusiasm for the sector.

The retreat by the S&P 500's largest segment helped send the broad index down 0.6% for the day, while the tech-heavy Nasdaq Composite declined 1%. The Dow Jones Industrial Average, which is less influenced by tech stocks, slipped 0.1%, or about 18 points.

Investors are looking ahead to Wednesday's report on the consumer-price index, the highest-profile inflation data remaining before the Federal Reserve's rate-setting committee meets next week. Producer-price numbers on Thursday and a consumer-sentiment reading Friday will also play into expectations of the central bank's thinking.

Traders think the Fed will hold interest rates steady at its September meeting but are divided about the chances of another increase before the end of the year.

In commodity markets, Brent crude oil edged up 1.6% to $US92.06 a barrel, gold remained flat at US$1,913.48.

In local bond markets, the yield on Australian 2 Year government bonds edged slightly up to 3.86% while the 10 Year was unchanged at 4.16%. Overseas, the yield on 2 Year US Treasury notes rose to 5.02% and the yield on the 10 Year US Treasury notes was down marginally at 4.28%.

The Australian dollar remained unchanged at 64.23 US cents. The Wall Street Journal Dollar Index, which tracks the US dollar against 16 other currencies edged up to 98.94.

Asia

Chinese shares closed lower after briefly turning positive during the session as concerns lingered over the country's economic prospects despite some indicators showing signs of improvement. Credit data released Monday showed new bank loans rising more than expected in August, signaling that Beijing's stimulus has been effective. Insurers and consumer brands weighed on the market. China Life Insurance declined 2.1% and China Tourism Group Duty Free dropped 1.0%. Among gainers, BYD rose 2.0% and China Mobile added 0.95%. The benchmark Shanghai Composite Index was 0.2% lower at 3137.06. The Shenzhen Composite Index edged down 0.1% and the tech-heavy ChiNext Price Index fell 0.6%.

Hong Kong shares ended lower after briefly turning positive during the session, with investor sentiment weighed by concerns over China's economic outlook. The benchmark Hang Seng Index ended 0.4% lower at 18025.89. The Hang Seng Tech Index was down 0.5% at 4063.96, with Alibaba Group Holding dropping 2.0% and Tencent Holdings declining 0.62%. Among gainers, Country Garden Holdings rose 3.9%, following a news report the indebted Chinese developer has received creditors' approval to extend repayments on six onshore bonds. China Evergrande Group was 5.2% higher after the report. China's domestic retail sales and fixed asset investment data due Friday were in focus, as they could offer more clues on whether Beijing's stimulus measures have been effective.

Japanese stocks ended higher, led by gains in auto, tech and real-estate stocks, as government-bond yields restored some stability following a surge on Monday. Mazda Motor climbed 4.0%, NTT Data Group gained 3.4% and Mitsubishi Estate added 3.4%. The Nikkei Stock Average rose 1.0% to 32776.37. The 10-year Japanese government bond yield stayed flat at 0.705%. Investors are focusing on economic data and their policy implications.

Indian shares closed slightly higher after a volatile session, extending gains to an eighth session. Investors await India's August CPI data due after the market close. Goldman Sachs analysts expect headline consumer inflation to decline to 6.9% on year from 7.4% in the previous month. The gains in some large-cap IT and financial shares offset mid-cap stocks' declines. Tata Consultancy Services rose 2.9% and Infosys climbed 1.7%. ICICI Bank added 1.3%. Energy stocks fell broadly. Conglomerate Reliance lost 1.5% and Coal India declined 2.9%. The benchmark Sensex rose 0.1% to 67221.13.

Europe

The pan-European Stoxx Europe 600 index closed 0.2% lower at 455.40, as a steep rise in oil prices reignited concerns about risks of further rises in inflation and interest rates. Real estate, industrial and technology stocks are among the biggest fallers as the price of a barrel of Brent crude rises above $92 to its highest since November 2022.

Germany's DAX ended down 0.5% and France's CAC 40 lost 0.4%.

However, the U.K.'s energy-heavy FTSE 100 ended up 0.4%. "Rising oil prices thanks to supply disruptions in Libya weigh on sentiment," wrote Axel Rudolph, analyst at online trading platform IG. "Stock indices, except the energy laden FTSE 100, gave back some of Monday's gains as the tech sector slid."

North America

US stocks closed lower on Tuesday, with the Nasdaq Composite leading the way down, as Apple's unveiling of its new iPhone and watch failed to boost appetite for equities.

Technology stocks pulled the S&P 500 lower Tuesday after a disappointing forecast from Oracle damped enthusiasm for the sector.

The retreat by the S&P 500's largest segment helped send the broad index down 0.6% for the day, while the tech-heavy Nasdaq Composite declined 1%. The Dow Jones Industrial Average, which is less influenced by tech stocks, slipped 0.1%, or about 18 points.

Investors are looking ahead to Wednesday's report on the consumer-price index, the highest-profile inflation data remaining before the Federal Reserve's rate-setting committee meets next week. Producer-price numbers on Thursday and a consumer-sentiment reading Friday will also play into expectations of the central bank's thinking.

Traders think the Fed will hold interest rates steady at its September meeting but are divided about the chances of another increase before the end of the year.

"The November meeting is still up for debate, and a number like the CPI tomorrow could very well feed into what they anticipate doing," said Victoria Fernandez, chief market strategist at Crossmark Global Investments, of the Fed.

How high Fed officials raise rates, and how long they keep them elevated, is a critical question for money managers weighing the attractiveness of risky assets like stocks. The path of interest rates also factors in investors' expectations of when the US might enter its next recession.

Analysts have been parsing the moves of different corners of the market for signals about the economic outlook. Materials and industrials stocks, which tend to falter when the economy is looking shaky, have slipped this month. Utilities, which often perform well when there are fears of recession, have ticked higher, paring their 2023 declines.

"The market is struggling with the idea of a pending recession," said Brad McMillan, chief investment officer at Commonwealth Financial Network. "They think it's coming, but they're not sure when."

In bond markets, the yield on the benchmark 10-year US Treasury note slipped to 4.263%, from 4.287% Monday.

The technology sector led the way lower Tuesday, with Oracle shares slumping 13%, their largest one-day percent decrease since March 2002. The software giant revealed late Monday that it had missed expectations for quarterly sales and shared an underwhelming outlook for sales in the current quarter.

Technology is one of the stock market's top-performing sectors in 2023, with a gain of 39%, compared with an advance of 16% by the S&P 500. But the Oracle report seemed to erode the appeal of tech stocks in general, at least for the day.

Microsoft shares fell 1.8%, Adobe shares dropped 3.9% and Broadcom shares retreated 1.7%. Nvidia shares slipped 0.7%, extending their losing streak to five consecutive sessions, their longest since December, according to Dow Jones Market Data.

Apple shares declined, remaining in negative territory after the iPhone maker's annual event unveiling new products. The company's stock ended the day down 1.7%.

Shares of automakers rose after the United Auto Workers union softened its demands for wage increases. Ford shares gained 1.9%, General Motors shares advanced 2.6% and shares of Chrysler owner Stellantis rallied 2.6%.

Shares of WestRock rose 2.8% after Ireland's Smurfit Kappa agreed to buy the packaging company for $11.15 billion.