It’s going to be a rough start to trading on the ASX this morning on top of Thursday’s Telstra driven surge and slide.
That’s after Wall Street suffered sharp sell-off overnight Thursday amid concerns about President Donald Trump’s legislative agenda and news of a terrorist attack in Barcelona combined to trigger selling a wave of selling.
Technology shares suffered the worst of the selling following disappointing results from Cisco Systems whose shares fell more than 4% and was one of the worst performers in the S&P 500.
The Dow and the S&P 500 in fact suffered their largest falls since May 17, each down by well over 1%. Nasdaq was down nearly 2%.
The Australian market is looking for a fall of at least 40 points, or around 0.8%.
That fall will come after the local market suffered a mixed day which eventually dropped 0.1% or nearly 6 points in the wake of the vicious sell off in Telstra shares following its dividend cut.
Gold and oil rose though and the US dollar rose. The Australian dollar dropped under 79 US cents after regaining that level.
The Dow is coming off a four-day string of gains and has risen in 14 of the past 18 trading days – but this was the biggest drop. The Dow Jones ended down 1.2%, the first 1% plus fall in the last 64 trading sessions.
The S&P 500 closed 1.5% lower, its lowest level since July 11th.
The tech-heavy Nasdaq Composite, fell 1.9%, erasing its gains in the week to date.