US markets edge lower, home sales drop
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More news: The three major US market indices have closed lower after traders returned from the Thanksgiving break.
The technology focused Nasdaq tracked higher for much of trading but spiralled moments before the market closed. It ended lower by 9.83 points or 0.07% at 14,241.02. The Dow Jones Industrial Average closed lower by 56.75 points, or 0.16 per cent, at 35,333.4. And the broader S&P 500 finished down by 8.92 points or 0.2% at 4,550.42. Healthcare, communication services and industrial stocks were some of the biggest weights on the markets.
A larger than expected drop in new home sales added to the subdued sentiment. But the data of most interest this week in the US will be inflation figures. The personal consumption expenditures report is the Fed's preferred measure of inflation. However, financial markets have priced little chance of a change to rates at the central bank's meeting next month.
Timid start tipped for ASX; retail sales data due
The news: The Australian sharemarket looks set for a muted start to Tuesday after US markets moved little in post-Thanksgiving trading. The US dollar slid against most major currencies, weighed down by expectations that the Federal Reserve could start cutting interest rates by the first half of next year.
The numbers: The Dow Jones Industrial Average and S&P 500 were marginally lower in late trade. The Dow was lower by 57.25 points or 0.16% to 35,332.9, while the broader S&P 500 had slipped 5.46 points or 0.12% to 4,553.88. The technology focused Nasdaq fared better. It was higher by 13.55 points or 0.95% to 14,264.40 points. The ASX 200 futures index was up 0.11% to 7016. The Aussie dollar was higher and buying 66 US cents.
The context: The main economic data expected for Australia on Tuesday is October retail trade figures. These are likely to highlight muted spending as the high cost of living, interest rate hikes and personal income tax growth affected bank balances. Australian and US inflation data are set to be published mid-week.
The source: Reuters
