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  • ASX poised for losses as global markets slide

    2019 - 01.21

    The Australian sharemarket looks set for a rough start on Thursday following heavy falls on Wall Street and in Europe.
    Nanjing Night Net

    After adding very little on Wednesday, SPI futures are down 43 points, indicating the benchmark S&P/ASX200 will start down.

    It comes as Wall Street suffered its third straight losing session, with the S&P 500 down 1.3 per cent, the Dow Jones Industrial Average falling 1.6 per cent and the Nasdaq tanking 2.2 per cent.

    Part of the reason for the poor performance has been attributed to some disappointing US economic data. US durable goods orders slumped 1.4 per cent in February, expectations had been for a small rise.

    This adds to a string a weak data in the US of late, which may cause the US Federal Reserve to rethink when it begins to raise interest rates.

    European shares also struggled overnight. Germany’s DAX dropped 1.2 per cent, France’s CAC lost 1.3 per cent,  London’s FTSE100 fell 0.4 per cent and the Eurostoxx 50 slumped 1.3 per cent.

    The Australian dollar slipped 0.4 per cent against its US counterpart to US78.44¢. Against the euro, the Aussie slipped 0.9 per cent to 71.48 euro cents.

    “Realistically, the main event in the Australian market today commences at 2:30pm AEDT when Australia take on India in the second semi-final of cricket world cup, at the SCG,” NAB global co-head of FX strategy Ray Attrill said.

    “A match that stops the nation? Perhaps, and certainly there is nothing by way of domestic data or market events to provide any distraction, either in Australia, New Zealand or up in Asia for that matter.”

    Oil enjoyed a strong surge overnight, with Brent crude jumping 2.3 per cent to $US56.38 per barrel, while West Texas Intermediate lifted 3.4 per cent to $US49.12 per barrel. Gold inched higher to $US1195.85 an ounce.

    This story Administrator ready to work first appeared on Nanjing Night Net.

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