Australian shares are on track to shed another 1 per cent at the open, as the S&P 500 continues to reset lower. $A has a US68¢ handle. Bitcoin steadier.
Australian shares are to extend their losses, in line with Wall Street, though the pace of the sell-off has slowed with investors waiting for early Thursday’s Federal Reserve rate move.The local currency slid below US69¢; the Bloomberg dollar spot index was 0.3 per cent higher.
The yield on the US 10-year note was 8 basis points higher to 3.44 per cent at 12.53pm in New York. The two-year yield was at 3.42 per cent.In a twee, Mohamed El-Erian said: “The turmoil in the US government bond market continues, fuelled by the erosion in #Fed policy credibility. Sadly, such a dislocation in interest rate risk tends to have several adverse economic, financial and social spillovers. It also deepens the Fed’s lose-lose dilemma. #bonds.
Health care and industrial stocks led sectoral losses in Europe, while battered banks edged 1.1 per cent higher. “There is also a nagging sense that the European banking system is still not in the best of health and that would be another potential weight on growth.”