The Australian sharemarket is set to open lower after the world’s biggest bond market was hammered anew and Wall Street edged lower as Jerome Powell signalled policymakers are in no rush to cut interest rates.
The Australian sharemarket is set to open lower again after the world’s biggest bond market was hammered anew and Wall Street edged lower as Jerome Powell signalled policymakers are in no rush to cut interest rates.
ASX futures dropped 24 points, or 0.3 per cent, to 7611 as of 6.12am AEST. The Australian sharemarket tumbled for the fourth trading day in a row on Tuesday, with all sectors trading firmly in the red and the S&P/ASX 200 Index closing 1.8 per cent lower. Treasury 10-year yields climbed six basis points to 4.66 per cent. The US dollar rose against all of its developed-market counterparts.
After starting the year by pricing in as many as six rate cuts in 2024, or 1.5 percentage points of easing, traders are now doubtful there will even be a half point of reductions. Most Wall Street economists have dialled back forecasts as well, setting up a dour scenario for US yields. Exposure to stocks is now so high that any weakness is likely to set off a bigger slump once investors start to cut back on their long positions, according to top Wall Street strategists.
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