Market set to open sharply down

THE Australian market looks set to open sharply lower after Wall Street falls more than one per cent amid concerns about Donald Trump.

THE Australian market looks set to open sharply lower after Wall Street falls more than one per cent amid concern US President Donald Trump will struggle to deliver promised tax and healthcare reform.

At 0700 AEDT on Wednesday, the share price futures index was down 48 points, or 0.8 per cent, at 5,5710.

In the US the Dow and the S&P 500 each fell more than one per cent — with the financial sector having its worst day since last June — while the Nasdaq down more than one-and-a-half per cent.

Investors appear concerned that President Donald Trump may struggle to get his healthcare and promised tax cuts through Congress.

The Dow Jones Industrial Average lost 1.14 per cent, the S&P 500 fell to its lowest since October, before Donald Trump’s election as US president, while the Nasdaq dropped 1.83 per cent Locally, no economic news is expected on Wednesday.

In equities news Nufarm is expected to post half-year results. The Australian market on Tuesday closed flat with both indexes only fractionally lower as falls from the major miners and the big four banks offset gains for retailers and China-exposed baby formula and vitamin makers. The benchmark S&P/ASX200 index fell 4.3 points, or 0.07 per cent, at 5,774.6 points while the broader All Ordinaries index was down one point, or 0.02 per cent, at 5,819.5 points.

Meanwhile, the Australian dollar has dropped sharply against the US dollar late in the Wall Street’s trading session.

The local currency was trading at 76.85 US cents at 0700 AEDT on Wednesday, from 77.05 on Tuesday.

It is also down against the yen, the euro, the pound sterling and the NZ dollar.

CURRENCY SNAPSHOT AT 0700 AEDT

One Australian dollar buys:

* 76.85 US cents, from 77.02 on Tuesday

* 85.82 Japanese yen, from 86.88 yen

* 71.09 euro cents, from 71.58 cents

* 61.58 British pence, from 62.37 pence

* 109.19 New Zealand cents, from 109.50 NZ cents

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