ASX to slip, Nvidia resets record high, oil steadies
Australian shares are set to open lower, tracking weakness on Wall Street where a rally has run out of momentum near record highs. Nvidia reset its record high, moving towards a $US4 trillion market cap. Oil steadied.
Nvidia has rallied more than 60 per cent from an early April low amid renewed optimism for the outlook for artificial intelligence.
While US equities 'have rebounded strongly since April, they are still lagging equities in most other major stock markets since their peak in February', Capital Economics' Hubert de Barochez said.
'One reason is that the US dollar has weakened against most currencies, boosting equity returns elsewhere in common-currency terms. But reduced political uncertainty would probably lead the dollar to recover, and could also put the spotlight back on the potential of AI.'
Market highlights
ASX futures are pointing down 37 points or 0.4 per cent to 8500.
All prices as of 2.30pm New York time.
Today's agenda
May job vacancies data will be released on Thursday. NAB said while job vacancies to date have fallen back 30.7 per cent from their May 2022 peak, the total number of vacancies is still 44.5 per cent higher than prior to the pandemic.
'An alternative way to express job vacancies is in terms of those unemployed. On that basis, the unemployment to job vacancy ratio currently stands at 1.9x, and although up from its pandemic low of 1.0, is still a lot lower than the 3.1x it was prior to the pandemic.'
The NATO leaders summit has concluded and it will be followed by a Eurozone leaders meeting on Thursday.
A raft of US data is set for release including monthly durable goods orders, trade and a third reading of first-quarter GDP as well as weekly initial jobless claims.
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Fix Howard's problematic GST deal, Hewson urges Chalmers | The architect of the Liberal Party's first GST policy says a rethink of federal-state responsibilities needs to be part of a tax reform agenda.
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