Australian shares set to tread water after Wall Street dip
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The news: The Australian sharemarket is set to open barely changed after major indices on Wall Street finished slightly lower in choppy trading following labour market data.
The numbers: The Dow Jones index edged 0.09% higher, but the broader S&P 500 slipped 0.16% and the tech-heavy Nasdaq lost 0.30%. In the local market, ASX 200 futures were up just 2 points or 0.02% to 7,940 points at 7am AEST on Thursday.
The context: US stocks finished slightly lower a day after all three Wall Street indices slumped to their biggest one-day loss since early August as investors dumped technology-related stocks in a dour start to September — which is historically the worst month for equities.
Overnight, Labor Department data showed US job openings fell to a 3-1/2-year low in July, indicating continued easing of labour market tightness that could strengthen the Fed's hand to begin cutting rates at its next meeting later this month.
Atlanta Fed president Raphael Bostic also said the central bank must not keep interest rates too high much longer or it risks causing too much harm to employment. He added that waiting until inflation falls back to the Fed's 2% goal before cutting rates "would risk labour market disruptions that could inflict unnecessary pain and suffering."
The source: Reuters
