**ASX Set to Decline Amid Global Market Volatility, Tech Sector Drives Wall Street Gains**
*Adapted from the original article by Sarah Turner for the Australian Financial Review. Additional information sourced from Reuters and Bloomberg.*
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Australia’s share market is projected to open lower, reflecting cautious investor sentiment despite a strong performance by US technology stocks on Wall Street. Global markets remain volatile as traders weigh economic signals, central bank policies, and high-profile corporate earnings.
### ASX Poised for Negative Start
– The Australian share market (ASX) is expected to fall at the opening bell, with futures contracts indicating a decline following the latest Wall Street session.
– SPI200 futures, which are used to forecast movements in the ASX200 index, were down roughly 25 points ahead of trading, pointing to a weaker open after local losses in the last session.
– Market participants in Australia are responding to swift international shifts, soft commodity prices, Chinese economic data, and evolving geopolitical risks.
### Wall Street Remains Buoyant thanks to Tech
– In contrast to the ASX’s outlook, US stocks advanced in the last session, primarily boosted by large technology companies.
– The Nasdaq Composite was the standout performer, reflecting strong gains in mega-cap tech players, such as:
– Apple
– Nvidia
– Microsoft
– Alphabet (Google’s parent company)
– The S&P 500 index also ticked higher, while the Dow Jones Index struggled to maintain early momentum and ended nearly flat.
### Global Market Drivers
– Investors’ optimism in the US has been driven by expectations that the Federal Reserve will keep interest rates steady and potentially cut them later in the year.
– The anticipation of interest rate moves has resulted in shifts in risk appetite, particularly toward growth sectors including tech, artificial intelligence, and software.
– Conversely, concerns linger regarding global economic growth, with caution prevailing amid mixed economic releases from China and Europe.
### Australian Market Themes
– Domestically, the ASX has reacted to a weaker local currency, declining commodity prices, and mixed signals from corporate earnings.
– Sectors with high exposure to global demand, such as miners and energy companies, have come under pressure.
– Financials remain in focus as the Reserve Bank of Australia prepares for its next monetary policy decision.
– Investors continue to monitor inflation data and the evolving outlook for consumer and business spending.
### Key Factors Influencing Markets
– **Inflation and Interest Rates:** Central banks in the US, Australia, and Europe are closely watched for signals regarding future rate adjustments.
– **Corporate Earnings:** US tech companies have impressed with robust quarterly results, supporting overall market sentiment.
– **Commodities:** Prices for key Australian exports such as iron ore, coal, and liquefied natural gas have weakened recently, reflecting concerns about slowing Chinese demand.
– **Currency Movements:** The Australian dollar has traded under pressure as investors opt for the perceived safety of the US dollar during times of uncertainty.
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