ASX to fall after US payrolls data underwhelms Wall Street
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The news: Australia's sharemarket is poised to drop once trading gets going on Thursday after US markets stalled overnight. US payrolls figures increased by less than investors' expected, suggesting Federal Reserve rate hikes are cooling the economy.
The numbers: In late trading, the Dow Jones Industrial Average was little changed at 36,110 points. The broader S&P 500 index had also barely moved and was at 4,561 points. The technology focused Nasdaq was lower by just 48 points, or 0.3%, to 14,181.
On the domestic market, the ASX 200 futures was down 21 points to 7188. The Aussie dollar was little changed and buying 65.49 US cents.
The context: US private payrolls increased by 103,000 jobs in November, below economists' expectation of 130,000.
On Wall Street, tobacco giants Altria Group and Philip Morris International were down 2% and 1% respectively, after UK peer British American Tobacco said it will take a £25 billion ($47.8 billion) hit from writing down the value of some US cigarette brands.
Expectations have risen for rate cuts in other global economies. Markets have priced a 71% chance of a cut by the European Central Bank in March, according to Reuters.
The source: Reuters
