The ASX is heading for a nasty opening later this morning after Wall Street saw a big slump on Friday after China first and Donald Trump escalated their trade war and the President attacked the character of the US Federal Reserve chair, Jerome Powell.
US S&P 500 futures were showing fall at the close on Saturday morning – pre-opening trading won’t resume until later today as Asian markets resume dealings.
That was on top of the 600 plus slump in Friday’s trading session.
They will see-off in line with the 2.6% to 3% drop on Friday night on Wall Street.
The ASX futures market showed a fall of at least 86 points – 1.3% by the close on Saturday morning after US markets fell by in the wake of Trump’s Twitter tirade and trade war escalation.
That was after eurozone shares fell 1.1% on Friday and the US S&P 500 lost 2.6%.
Bond yields were mixed with initial rises that were reversed on Friday as the trade war escalated again. The Australian 10-year yield ended at 0.95%, up four points on the day.
Oil, metal and iron ore prices fell but the gold price rose.
The $A fell despite a rise in the $US.
Last week saw the ASX rise 1.84% or 117.6 points to close at 6,523.1
The Australian market is heading for a losing last week to August.