The Australian share market looks set to open in negative territory after White House economic adviser Larry Kudlow’s comments left investors uncertain over the trade relations between the US and China.
At 0700 AEST on Thursday, the share price futures index was down 11 points, or 0.18 per cent, at 6,127.
At the opening of Wall Street, stocks rose as President Donald Trump said he will use a strengthened national security review panel – the Committee on Foreign Investment in the United States (CFIUS) – to deal with potential threats from Chinese acquisitions of US technology, instead of imposing China-specific restrictions.
Investors saw that as a somewhat softer approach than plans reported earlier to block firms with at least 25 per cent Chinese ownership from buying US tech firms.
But the waters were muddied when Larry Kudlow later told Fox Business Network that Trump’s announced plan did not indicate a softened stance on China.
The Dow Jones Industrial Average fell 0.68 per cent, the S&P 500 lost 0.86 per cent, and the Nasdaq Composite dropped 1.54 per cent.
Locally, in economic news on Thursday, the Australian Bureau of Statistics releases May jobs vacancies data.
No major equities news is expected.
The Australian market on Wednesday closed flat, with gains for energy and material stocks not doing enough to overcome losses elsewhere on the market.
The benchmark S&P/ASX200 index ended down 1.7 points, or 0.03 per cent, at 6,195.9 points, while the broader All Ordinaries was down 1.6 points, or 0.03 per cent, at 6,290.5 points.
Meanwhile, the Australian dollar is lower after the Trump administration’s comments sparked a US dollar rally.
The local currency was trading at 73.14 US cents at 0700 AEST on Thursday, from 73.83 on Wednesday.
CURRENCY SNAPSHOT AT 0700 AEST:
One Australian dollar buys:
* 73.41 US cents, from 73.83 on Wednesday
* 80.94 Japanese yen, from 81.07 yen
* 63.53 euro cents, from 63.29 euro cents
* 55.98 British pence, from 55.80 pence
* 108.00 NZ cents, from 108.23 cents
The spot price of gold in Sydney at 0700 AEST was $US1,252.16 per fine ounce, from $US1,257.27 per fine ounce on Wednesday.
BOND SNAPSHOT AT 0700 AEST:
* CGS 4.50 per cent May 2021, 2.0805pct, unchanged
* CGS 4.75pct May 2028, 2.6282pct, unchanged
Sydney Futures Exchange prices:
* September 2018 10-year bond futures contract at 97.385 (implying a yield of 2.615pct), from 97.365 (implying a yield of 2.635pct) on Wednesday
* September 2018 3-year bond futures contract at 97.925 (2.075pct), from 97.9 (2.10pct).
(*Bond market closes taken at 1630 AEST previous local session; currency closes taken from 1700 AEST previous local session)