Fresh fears over tariffs set to hit markets
AUSTRALIAN shares are set for a sluggish start today following reports US President Donald Trump has called for fresh tariffs on China.
AMP Capital’s chief economist Shane Oliver said any tariffs that are imposed won’t directly impact local markets, but all eyes will remain on the US next week to see if Mr Trump carries through.
Tomorrow, the release of the minutes of Reserve Bank’s last meeting are expected to show the RBA remains optimistic about the economy, with no move on interest rates.
Homeowners and investors may not be so happy when the Australia Bureau of Statistics releases house price data for June on the same day. Dr Oliver said it is set to show another fall – around 1 per cent, led by Sydney and Melbourne.
The US-China trade war is likely to impact the Australian dollar, which looks likely to slide. It was trading at US71.5¢ yesterday.
The ASX 200 has fallen 2.4 per cent to 6165.3 points since the end of August. Dale Gillham, chief analyst at financial services company Wealth Within, expects the market to track lower for the next week.
“There has been a lot of speculation of late that the US stock market is heading for another major correction or possibly a crash like the GFC,” he said. “Many also believe Australia will follow suit although I disagree with this.
“My expectations are that the Australian market will continue to fall for another one to two weeks to between 6000 and 6150 points before finding support and rising once again.’’