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Profit-taking dominated the overnight trading session in the United States, after yesterday's strong gains which saw the Dow Jones Industrial Average surge past the 21,000 point mark for the first time.
- ASX SPI 200 futures -0.5pc to 5,737
- AUD: 75.72 US cents, 61.72 British pence, 86.62 Japanese yen, 72.04 eurocents, $NZ1.0716
- US: S&P 500 -0.58pc to 2,381, Dow Jones -0.53pc to 21,002, Nasdaq -0.73pc to 5,861
- Europe: Euro Stoxx -0.1pc to 361.58, FTSE -0.01pc to 7,382, DAX -0.06pc to 12,059
- Commodities: Gold -1.1pc to $US1,235.11/ounce, Brent crude oil -2.22pc $US55.11
Financial stocks were among the hardest hit, but the energy sector also came under pressure following a drop in oil prices.
Stocks in heavy equipment manufacturer Caterpillar fell by 5 per cent after its facilities in Ilinois were searched by law enforcement officials.
Investors were also closely watching the debut of Snapchat's parent company, Snap, which is now valued at more than $30 billion after the company priced its initial public offering of 200 million non-voting shares at $17 each.
In economic news, initial claims for jobless benefits fell by 19,000 to 223,000 last week, marking their lowest level since March 1973.
Analysts said that was solid evidence of ongoing labour market strength, suggesting upside risks to US growth.
European markets traded lower after a strong rally in the previous session.
In economic news, annual euro area Consumer Price Index inflation jumped to a four-year high of 2 per cent, while the core measure remained at 0.9 per cent.
NAB currency strategist Rodrigo Catril said the result would likely see the European Central Bank sharpening its pencils for some key changes.
"Higher headline inflation is likely to see the ECB revise up its inflation forecasts, although soft core inflation helps justify its current QE program," he wrote in a note to clients.
Locally, the market is on track for a weak start, with the ASX SPI 200 down 0.5 per cent to 5,737 at 8.15am AEDT.
At the same time, the Australian dollar had dropped against the US dollar, helped by data and as investors bet on rate hikes in the US. The Australian dollar was 1.3 per cent lower at 75.7 US cents.
West Texas Crude oil had fallen to $US52.58 a barrel, the price of a barrel of Tapis was also lower at $US56.25 and spot gold had fallen to $US1,235.11 an ounce
Topics: business-economics-and-finance, company-news, markets, money-and-monetary-policy, currency, stockmarket, futures, australia, united-states
First posted