Australian market set to open lower

THE Australian market looks set to open lower after Wall Street fell following US president Donald Trump’s says he will bring down drug prices.

THE Australian market looks set to open lower after Wall Street fell following US president Donald Trump’s says he will bring down drug prices and backed a bill to replace the Obamacare healthcare law.

At 0700 AEDT on Wednesday, the share price futures index was down nine points at 5,745.

In the US, stocks fell as weakness in drug and financial shares put the S&P 500 and the Dow Jones Industrial Average on pace to register their first consecutive declines in more than a month.

Pharmaceutical stocks came under pressure after US president Donald Trump tweeted that he was working on a “new system” to reduce drug prices in the industry, without providing details.

Trump also backed a draft bill unveiled by Republicans on Monday to repeal and replace the ‘Obamacare’ healthcare law, but said the bill was open to negotiation.

Locally, in economic news on Wednesday, Westpac’s chief executive Brian Hartzer faces the House of Representatives Economics Committee.

No major equities news is expected.

The Australian market on Tuesday closed higher as US President Donald Trump’s move to repeal “Obamacare” appeared to help clear the way for him to start tackling tax reform, which markets have been waiting for.

The benchmark S&P/ASX200 index gained 14.9 points, or 0.26 per cent, to 5,761.4 points, while the broader All Ordinaries index rose 13.4 points, or 0.23 per cent, to 5,801.9 points.

Meanwhile, the Australian dollar is sharply lower against its US counterpart. The local currency was trading at 75.88 US cents at 0700 AEDT on Wednesday, from 76.16 on Tuesday.

CURRENCY SNAPSHOT AT 0700 AEDT

One Australian dollar buys:

* 75.88 US cents, from 76.16 on Tuesday

* 86.54 Japanese yen, from 86.76 yen

* 71.81 euro cents, from 71.95 cents

* 62.19 British pence, from 62.22 pence

* 108.97 New Zealand cents, from 108.75 NZ cents

(*Currency closes taken at 1700 AEDT previous local session)