Australian shares are poised to start the last day of the week lower after United States stocks and Bitcoin eased back from record highs.
Futures trading indicated the benchmark S&P/ASX 200 Index would open down with the share price index (SPI) futures quoted 20 points (0.2%) lower at 8,490 at 9:30 am (AEDT).
On Wall Street the Dow Jones Industrial Average fell 0.6% and the S&P 500 and Nasdaq Composite dropped 0.2% as investors worried about high valuations and waited for important jobs data on Friday.
This in turn followed another push higher by Australian stocks on Thursday with the S&P/ASX 200 Index ending just 0.2% under its record finish on Tuesday.
Bitcoin pushed past US$100,000 for the first time on Wednesday (Thursday AEDT) on optimism about support for cryptocurrencies from the new United States administration, before easing back.
Burrell Stockbroking wealth adviser Adam Dight said investors were considering the implications of weak Australian economic growth for consumer discretionary stocks as they positioned portfolios for the next profit reporting season.
Australia’s gross domestic product (GDP) increased by 0.3% in the September quarter of 2024 and 0.8% in the year to September 2023, continuing a slowing trend evident since September 2023.
“It’s been a great three months for the market as we were in the slipstream of a rising tide,” Dight said.
“But Australia is on its own heading into 2025 with a restricted interest rate cycle while the rest of the world is easing.
“You have to be very careful which stocks you hold between and now and February and start culling stocks you don’t think will beat expectations because the market is indifferent to wiping 6% off a stock these days.”
Consumer discretionary stocks including retailers are most sensitive to changes in the health of the economy and consumer spending.
On fixed interest markets Australian Government bonds were barely changed with the 10-year yield at 4.255% (up 0.02%) and the two-year rate at 3.902% (up 0.05%).