The Australian sharemarket is set to start the week lower after Wall Street’s technology stocks faltered on Friday (Saturday AEDT), with Australia’s mid-year budget update also due this week.
ASX futures dropped 0.6% to 8,659. The ASX 200 closed 1.2% higher at 8,697.3 on Friday, notching its third consecutive weekly gain.
The Australian government’s Mid-Year Economic and Fiscal Outlook will be released on Wednesday, Treasurer Jim Chalmers wrote in an Australian Financial Review op-ed yesterday. It will include A$20 billion in additional savings, he said, with higher allocations for disaster relief and the age pension.
The budget update “will be all about delivery, responsibility and restraint”, according to Chalmers. “From building more homes to new training opportunities and more mental health centres, the mid-year budget update will deliver what matters most for Australians.”
ASIC has also released the interim findings of its probe into the ASX’s operation, with the final report due by the end of March 2026. The ASX has agreed to reforms including retooling the directorship of its Clearing and Settlement Facility Boards and an $150 million capital charge.
“ASX needs to embrace a new era of accountability, investment, and stewardship to increase confidence, and meet the expectations of the market and the Australian public,” said ASIC chair Joe Longo.
On Wall Street, the S&P 500 shed 1.1% before the weekend, with the Dow Jones Industrial Average down 0.5% and the Nasdaq Composite falling 1.7%.
The Nasdaq’s tech index closed 2.6% lower, having been hit by an 11% drop in Broadcom’s shares after it offered a lower-than-expected gross margin forecast.
Nvidia also declined by 3.3%, while Oracle continued to fall after a weak outlook dented its share price on Thursday (Friday AEDT).
On the bond markets, 10-year and 2-year rates were steady at 4.761% and 4.029%, respectively.
