Australian Shares Slump as US Inflation Worries Rise

Australian shares are expected to open lower on Thursday due to renewed US inflation worries and a warning from Federal Reserve Governor Lisa Cook that interest rates may need to rise again.

The S&P 500 dipped 0.2% and the Nasdaq slid 0.8% overnight, while the Dow added 0.5%, as investors shifted towards steadier stocks with lower growth expectations.

This shift in investor sentiment is a sign that higher US interest rates can push up borrowing costs globally, which may weigh on shares that rely heavily on distant profits.

Australia's market will also be influenced by two closely watched local reads, building approvals and international trade in goods, due at 11:30 am Sydney time, giving traders a fresh data point on domestic momentum.