Fresh fears over tar­iffs set to hit mar­kets

The Courier-Mail - - BUSINESS - AARON BUNCH

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.’’

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