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Shares are expected to fall early on the Australian market after US markets lost momentum late in the session.

The Australian SPI 200 futures contract was lower by 65.0 points, or 1.06 per cent, to 6073.0 points at 0700 AEST on Wednesday.

US markets finished higher as investors welcomed news that European leaders have agreed on a budget and coronavirus relief fund worth more than two trillion US dollars.

They are also optimistic that Washington will deliver a new round of stimulus to sustain the US economic recovery from a pandemic-induced recession.

The march upward lost steam late in the session, and a drop in tech shares pulled the Nasdaq lower.

The Dow Jones Industrial Average rose 159.53 points, or 0.6 per cent, to 26,840.4, the S&P 500 gained 5.46 points, or 0.17 per cent, to 3,257.3 and the Nasdaq Composite dropped 86.73 points, or 0.81 per cent, to 10,680.36.

In Australia today, retail sales figures for June will be published and could influence the market direction.

Investors may also be inclined to take some profits after the share market on Tuesday closed at its best level since before the pandemic.

The benchmark S&P/ASX200 index closed up 154.7 points, or 2.58 per cent, at 6,156.3 points, while the All Ordinaries index gained 156.5 points, or 2.56 per cent, at 6,268.8.

The Australian dollar was trading at 71.28 US cents at 0700 AEST, higher from 70.38 US cents at Tuesday’s close.