ASX to extend losses; chip stocks drag Wall Street lower
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The news: The Australian sharemarket is set to extend losses after Wednesday’s decline as Wall Street’s major indices ended lower dragged down by falling chip stocks.
The numbers: Updated at 7:25am AEDT:
- ASX futures: down 15 points or 0.18% at 8,193 points
- Wall Street: Dow Jones down 0.15%, S&P 500 down 0.27, Nasdaq down 0.52%.
- Europe: FTSE 100 down 0.73%, CAC 40 down 1.10%, DAX down 1.13%
- Spot gold: up 0.39% to USD2,785.48 per ounce
- Oil prices: Brent up 2.36% to USD72.80/barrel, US WTI up 2.60% to USD68.96/bbl
- AUD: up 0.20% at 65.74 US cents
- Bitcoin: down 0.55% to USD72,281.92.
The context: The Nasdaq and S&P 500 were weighed down by a slide in chip stocks following dismal forecasts from Advanced Micro Devices and Qorvo, which offset gains after Google-owner Alphabet rose after the company beat expectations for third-quarter revenue and profit.
In economic data, US GDP increased at a 2.8% annualised rate in the third quarter, slightly below economists' forecast of 3% growth, while a separate report showed US private payrolls growth surged by a higher-than-expected 233,000 jobs in October.
What to Watch: The Australian Bureau of Statistics releases building approvals data and retail sales data for September at 11:30 AEDT, and annual general meetings for Woolworths, JB Hi-Fi, Corporate Travel Management and AUB.
The source: Bloomberg
