ASX to open lower; Wall Street sinks as Trump threatens Iran
Australian shares are poised to open lower as Wall Street took fright from an escalation of the Israel-Iran conflict with Donald Trump demanding 'unconditional surrender' from Iran.
The S&P was down nearly 1% and oil rose. West Texas Intermediate rose over $US74 a barrel.
Weak economic data from the US also weighed on investors. Retail sales fell for a second straight month, suggesting anxiety over tariffs and their finances prompted consumers to pull back after an early-year spending rush. Industrial production also dropped as utility output declined and manufacturers struggled for traction against a backdrop of cooler demand. Confidence among US homebuilders hit the lowest since December 2022.
'Investors should still expect some volatility in economic data due to lingering effects of trade policy,' said Bret Kenwell at eToro. 'The economy and the consumer are holding up for now, but there are signs of vulnerability. That could present risks in the second half of the year — particularly if we see a further slowdown in jobs or spending.'
Market highlights
ASX futures are pointing down 32 points or -0.4 per cent to 8513
All US prices are as of 1.30pm New York time.
Today's agenda
This morning sees the release of the Westpac-MI leading index at 10.30am. There will also be New Zealand consumer confidence and trade deficit data.
Overseas, the Euro zone and Britain will both issue CPI data at 7pm. The US Federal Reserve rates decision comes in the early hours of Thursday.
Top stories
'He's an easy target': Trump taunts Iranian leader, demands surrender | Donald Trump said the US knew where Iranian leader Ali Khamenei was hiding and would not kill him 'for now', crushing any hope of a truce between Israel and Iran.
Chalmers opens door to tax changes for budget repair | Treasurer Jim Chalmers has admitted the federal budget is unsustainable, flagging potential tax changes beyond superannuation.
Waislitz offered townhouses to settle with future sister-in-law | The billionaire attempted to settle a long-running dispute with his future sister-in-law six months after she launched her legal claim.
| Canva co-founder Cameron Adams says the tech giant has about 240 million monthly active users but only 10 per cent pay, as it finalises another acquisition.
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