Dow Jones gives up 200-point surge as trade-fuelled rally loses steam
The local share market is expected to slip at the open, amid a temperamental trading day on Wall Street.
The Australian dollar was buying 72.24 US cents, 57.07 British pence and 63.56 Euro cents at 7:15am (AEDT).
New York’s trading day began with optimism after a spokesman from Beijing’s commerce ministry said the US and China were in “close contact” for their trade talks.
A rally sparked by hopes of a de-escalating US-China trade war faded throughout the day.
The main US indices seesawed between positive and negative territory.
The industrial-skewed Dow Jones rose 50 points, or 0.2 per cent, to 24,578 at 3:15pm (New York time) — a long way down from its initial 200-point jump.
The benchmark S&P 500 slipped 0.2 per cent to 2,646.
Meanwhile, the tech-heavy Nasdaq index lost 0.6 per cent to 7,055.
There are several factors weighing on stock market investors, ranging from an unresolved trade war, the Federal Reserve’s likely announcement of a December interest rate hike, Brexit uncertainty, to fears of a US recession (or at least slowing economic growth).
More to come.