The Australian sharemarket again closed below the water line for the fourth trading day in the past five prior and booked a fresh eight-month low as investors wait for this Tuesday’s release of the Australian inflation data on Tuesday.

Overseas, the U.S. Federal Open Market Committee (FOMC) starts its two-day meeting; while no rate increase is expected, all eyes will be on the statement, as it is widely expected the U.S. central bank will begin hiking interest rates in March.

Meanwhile, much talk in the media shows that the Reserve Bank of Australia (RBA) could start hiking rates in August, followed by a further hike in October.

The Australian Bureau of Statistics released its December-quarter consumer price report on Tuesday, and a high reading could force the Reserve Bank of Australia to raise interest rates early.

The benchmark S&P/ASX 200 index sank -36.3 points, or -0.51%, to 7,139.5, while the All Ordinaries erased -48.6 points, or -0.65%, to 7,441.5, while our local currency, the Australian dollar, is currently buying US$0.7160.

As much tension looms in the global markets, there are two hurdles to watch: the U.S. Federal Reserve monetary policy and the imminent military conflict between Russia and Ukraine.