The Australian sharemarket is set to retreat at the open, with futures at 6.16am AEST pointing to a fall of 20 points, or 0.2%.
The softer start would extend Wednesday’s decline, when the ASX lost 0.6% to begin the new financial year on the back foot.
The Australian dollar was trading at US68.96 cents.
ASX starts financial year in the red
Local investors will be looking for direction after a weaker first session of the new financial year, with global markets offering a mixed lead overnight.
While some defensive and consumer names found support in the US, renewed pressure on artificial intelligence-linked stocks weighed on the major technology indices.
Wall Street ends mixed as AI stocks slide
US stocks finished mixed after recovering from deeper early losses, with the Dow Jones Industrial Average flat at 52,305.24, the S&P 500 down 0.2% to 7,483.23 and the Nasdaq falling 0.7% to 26,040.03.
An Institute for Supply Management report showed US manufacturing expanded at a slightly slower pace than economists had expected, while the survey also pointed to a moderation in prices.
The data eased some pressure on bond yields, with the 10-year Treasury yield pulling back from a morning peak near 4.50% to 4.47%.
That offered some relief to equities, although heavyweight AI-related names remained under pressure. Micron Technology dropped 10.6%, Advanced Micro Devices fell 6.9% and Nvidia lost 1.3% as concerns lingered that parts of the AI trade had become overheated.
General Mills helped support the broader market, rising 8.5% after reporting quarterly results ahead of expectations and outlining a US$3 billion cost-cutting plan over four years.
Nike gained 4.9% after beating quarterly expectations, while Kroger rose 1.3% after agreeing to buy Giant Eagle for US$1.25 billion in cash and assume US$400 million in liabilities.
Among S&P 500 stocks, AppLovin surged 9.58%, Coinbase Global rose 8.93% and Meta Platforms advanced 8.81%. The biggest decliners were Corning, down 13.59%, KLA Corp (NASDAQ:KLAC, XETRA:KLA), down 11.77%, and Teradyne, down 11.68%.
Asia closes mostly higher
Asian markets were mixed but broadly firmer across key benchmarks.
- Chinese shares closed higher, with the Shanghai Composite Index rising 0.4% to 4,112.45 and the Shenzhen Composite Index adding 0.4% to 2,851.81.
- Hong Kong shares moved the other way, with the Hang Seng Index falling 0.6% to 22,881.02.
- Japan’s Nikkei Stock Average climbed 0.6% to 70,474.96, while India’s BSE Sensex also gained 0.6% to 76,922.64.
Europe finishes mixed
European markets delivered a mixed lead.
- In the UK, the FTSE 100 slipped 0.2% to 10,478.34.
- On the continent, Germany’s DAX rose 0.2% to 25,040.28, while France’s CAC 40 fell 0.8% to 8,337.29.
Currencies
The Australian dollar was trading at US68.96 cents early this morning, leaving currency markets in focus as investors weigh shifting expectations for US interest rates and global risk appetite.
The easing in US Treasury yields after the manufacturing data helped take some pressure off non-yielding assets and risk-sensitive currencies, although sentiment remained cautious.
Commodities: gold rebounds, oil slips
Gold recovered from an early fall after briefly dropping below US$3,980 an ounce overnight.
The weaker-than-expected US manufacturing report and pullback in Treasury yields helped bullion regain ground, with gold rising 1.1% to settle at US$4,082.40 an ounce.
Oil prices moved lower as hopes remained that the United States and Iran could ultimately end the conflict and reopen the Strait of Hormuz to crude tankers.
Brent crude, the international benchmark, fell 1.9% to US$71.57 a barrel.