Australian shares to start lower after Wall Street declines
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The news: The Australian sharemarket is poised to open lower after an overnight decline on Wall Street, weighed by technology shares, as global central bank officials convened at the Jackson Hole Economic Symposium.
The numbers: The Dow Jones index ended 0.43% lower, while the broader S&P 500 lost 0.89% and the tech-heavy Nasdaq dropped 1.67%. In the local market, ASX 200 futures were down 43 points or 0.54% at 7,948 points at 7am AEST on Friday.
The context: All three major US stock indices lost ground as Treasury yields rose on easing recession fears. The so-called Magnificent Seven mega cap growth stocks weighed heaviest on the tech-laden Nasdaq.
Central bank officials from around the world have gathered in Jackson Hole for the annual Economic Symposium. Investors will be laser focused on Powell's address later on Friday for clues on the timing and extent of the Fed's policy easing cycle.
News of increasing US jobless claims, following Wednesday's sharply lower benchmark payrolls revision, appear to confirm the labour market is less robust than expected and is gradually softening. This soothed recession fears while bolstering the case for a 25 basis point rate cut at the Fed's upcoming September policy meeting.
In the local market, traders will be focused on earnings reports from Inghams, Latitude and Accent Group among others.
The source: Reuters
