**ASX Set to Open Lower as Investors Await Westpac’s Full-Year Results**
*Based on reporting by Sarah Turner, The Australian Financial Review.*
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As the new trading week begins, Australia’s share market is anticipated to experience a modest decline, following similar moves across major global markets. The focus will be on Westpac Banking Corporation, one of Australia’s largest lenders, as it prepares to announce its full-year financial results. The ASX’s direction, along with broader investor sentiment, will be influenced by a mix of local corporate announcements, central bank signals, and international economic events.
## Wall Street Cools After Gains
After a strong November rally, US equities cooled in the session prior to the ASX open. Investors paused to reassess risk as they digested robust economic data and the Federal Reserve’s reaffirmation of its “higher for longer” interest rate stance. Key Wall Street indices all closed in the red:
– The Dow Jones Industrial Average declined by 1.1 percent.
– The S&P 500 slipped 0.9 percent.
– The Nasdaq Composite fell 1.1 percent.
Investors are closely monitoring signals from the Federal Reserve, especially after Chair Jerome Powell repeated that policymakers are prepared to tighten monetary policy further if necessary to contain inflation.
## Australian Stock Market Outlook
Ahead of the local open, ASX SPI 200 futures pointed to a weaker start, signaling that the S&P/ASX 200 Index would likely fall around 0.5 percent. The slip reflects global trends and caution ahead of earnings releases from major corporate players.
### Key Factors Shaping the ASX This Week
1. **Corporate Earnings**:
– *Westpac Full-Year Results*: Westpac is the last of the major Australian banks to deliver its annual results. Investors will focus on dividend guidance, margin outlook, and bad debt provisions.
– Other blue-chip companies will also post updates, which could influence trading sentiment.
2. **Reserve Bank of Australia (RBA) Policy Meeting**:
– The RBA’s monthly board meeting is set for Tuesday.
– While most economists expect the cash rate to hold steady at 4.1 percent, there is residual risk for a surprise hike.
– Investors will scrutinize the RBA’s statement for any clues on future tightening or dovish pivots.
3. **Domestic Economic Data**:
– Retail sales, housing data, and trade figures will be released this week.
– These could shift expectations about the RBA’s monetary policy trajectory.
4. **Global Economic Events**:
– US nonfarm payrolls numbers are due at the end of the week.
– Any strong data could strengthen the case for global central banks to maintain restrictive policy.
### Market Themes
– *Interest Rate Sensitivity*: Rising bond yields internationally continue to cast a shadow on equity valuations, particularly for growth and technology shares.
– *Earnings Focus*: As the reporting season unfolds,
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