Australian shares set to drop as US slowdown worries weigh
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The news: The Australian sharemarket is set to track falls on Wall Street after slower-than-expected US economic growth and persistent inflation stunned investors.
The numbers: The Dow Jones index ended 0.98% lower, while the broader S&P 500 fell 0.46% and the tech-heavy Nasdaq lost 0.64%. In the local market, ASX 200 futures were down 26 points or 0.34% at 7616 points at 7:00am AEST on Friday.
The context: US stocks fell after data showed the US economy grew at its slowest pace in nearly two years while inflation accelerated, dampening hopes that the Federal Reserve would begin cutting interest rates this year.
Disappointing results from Meta, whose shares plunged nearly 11%, also weighed on market sentiment. Money markets are now pricing in just about 36 basis points (bps) of rate cuts from the Fed this year, down from about 150 bps seen at the start of the year.
Separately, the number of Americans filing new claims for unemployment benefits unexpectedly fell last week, pointing to still tight labour market conditions.
The March Personal Consumption expenditures index, the Fed's preferred inflation gauge, is due later on Friday (AEST Saturday).
The source: Reuters
