The Australian share market looks set to open firmly lower after Wall Street’s key indexes dipped ahead of the US tax reform bill vote that will slash the US company tax rate by 40 per cent
At 0700 AEDT on Wednesday, the share price futures index was down 14 points, or 0.23 per cent, at 6,063.
In the US, the House of Representatives is set to vote Tuesday afternoon on the Republicans’ tax bill – which, among other things, cuts the company tax rate from 35 per cent to 21 per cent. Senators vote in the evening.
The Republican party is confident of the bill being signed into law by the end of the week.
In late afternoon trading, the Dow Jones Industrial Average was down 0.12 per cent, the S&P 500 had lost 0.29 per cent and the Nasdaq Composite had dropped 0.54 per cent.
Locally, no economic or equities news is expected on Wednesday.
The Australian market on Tuesday hit a fresh decade high thanks to strong commodity prices and positive leads from overseas markets.
The benchmark S&P/ASX200 index rose 32.9 points, or 0.54 per cent, to 6,071.8 points.
The broader All Ordinaries index gained 33.2 points, or 0.54 per cent, to close at 6,163.2 points.
Meanwhile, the Australian dollar has slipped slightly against a subdued US counterpart ahead of the Congressional tax bill vote.
The local currency was trading at 76.64 US cents at 0700 AEDT on Wednesday, from 76.67 on Tuesday.
CURRENCY SNAPSHOT AT 0700 AEDT:
One Australian dollar buys:
* 76.64 US cents, from 76.67 on Tuesday
* 86.56 Japanese yen, from 86.33 yen
* 64.71 euro cents, from 65.02 euro cents
* 57.27 British pence, from 57.30 pence
* 109.64 NZ cents, from 109.52 cents
The spot price of gold in Sydney at 0700 AEDT was $US1,261.65 per fine ounce, from $US1,263.51 per fine ounce on Tuesday.
BOND SNAPSHOT AT 0700 AEDT:
* CGS 4.50 per cent April 2020, 2.0075pct, unchanged
* CGS 4.75pct April 2027, 2.5541pct, unchanged
Sydney Futures Exchange prices:
* March 2018 10-year bond futures contract at 97.335 (implying a yield of 2.665pct), from 97.395 (implying a yield of 2.605pct) on Tuesday
* March 2018 3-year bond futures contract at 97.840 (2.160pct), from 97.875 (2.125pct).
(*Bond market closes taken at 1630 AEDT previous local session; currency closes taken from 1700 AEDT previous local session)