Aussie stocks to open lower after selloff in US stocks

The news: The Australian sharemarket is likely to start on the backfoot following a decline on Wall Street overnight, after rating agency Moody’s downgraded the credit ratings several mid-sized U.S. lenders.

The numbers: The Dow ended 0.45% lower, the broader S&P 500 index lost 0.42%, while the tech-heavy Nasdaq dropped 0.79% taking its losses in August to 3.2%. ASX 200 futures were trading 5 points or 0.04% lower at 7246 at 0700 AEST on Wednesday.

The context: Market confidence in U.S. banks had been gradually returning after the failures of three lenders earlier this year, but the latest Moody's downgrade has reignited fears about the health of the sector and the broader U.S. economy. Australian investors will be watching results of two of their own banks, with Suncorp and CBA set to report earnings later on Wednesday.