Finance Finance News Australian shares tipped to open lower after another Wall Street sell-off

Australian shares tipped to open lower after another Wall Street sell-off

Aus share market
US stocks to suffer their biggest Thanksgiving-week loss since 2011
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The Australian share market is tipped to start the trading week lower, reversing Friday’s gains, after a weak session on Wall Street.

The market is likely to stay flat in the week ahead after plunging oil prices caused US stocks to suffer their biggest Thanksgiving-week loss since 2011.

The futures market predicts that the benchmark S&P/ASX200 will fall 0.6 per cent when Australian trade resumes at 10am today.

It follows broad-based selling on US markets on Friday, with big losses across the technology and the resources sectors.

The Dow Jones Industrial Average fell 179 points, or 0.73 per cent, to 24,285.95 while the S&P 500 index lost 17.4 points, or 0.66 per cent, to end the shorter holiday session at 2632.56.

AMP Capital chief economist Shane Oliver said the losses in New York could wipe out last week’s local market gains.

Energy and commodities stocks would remain volatile, Dr Oliver said, after oil slumped to $51 a barrel – down more than 30 per cent since October.

On the political front, there would be little impact from Labor’s landslide re-election in Victoria, he said.

“I assume it will just add to the overall nervousness of the upcoming Federal election,” Dr Oliver said.

Investors would be more interested in watching the G20 summit on Friday, amid crucial talks on trade tariffs between the US and China.

US tariffs are set to rise another 25 per cent on January 1.

“The best that can be hoped is President Trump will agree to put tariff hikes on hold,” Dr Oliver said.

Locally, Reserve Bank governor Philip Lowe will be watched for clues about tightening credit conditions on Monday, as he gives a speech at the Australian Payment Summit in Sydney.

The Banking Royal Commission also winds up on Friday following months of damning news about the conduct of the financial sector.

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