ASX to rise, S&P 500 edges higher despite data

AU Financial Review

2 days ago

Australian shares are set for a modest opening advance, in line with similar modest gains in New York after data pointed to broader weakness in the US economy.
A contraction in US service providers and a deceleration in hiring drove bond yields down across the US curve. The data led traders to reinforce their bets that the Federal Reserve will be forced to cut interest rates at least twice this year to avert a recession.
The reports came on the same day as President Donald Trump imposed 50 per cent tariffs on most imports of steel and aluminium.
Economic activity declined slightly in the US in recent weeks, indicating tariffs and elevated uncertainty are rippling across the economy, the Federal Reserve said in its Beige Book survey of regional business contacts, released at 2pm New York time.
Market highlights
ASX futures are pointing up 9 points or 0.1 per cent to 8574.
All US prices near 2.30pm New York time.
Today's agenda
A new data set from the ABS is set to provide insight on consumers: the monthly household spending indicator. In addition, Thursday data includes April's trade balance.
Later, policymakers at the European Central Bank will meet. The US is scheduled to release its April trade report and initial weekly jobless claims, a day before the May nonfarm payrolls report.
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