Iron ore in focus with ASX 200 set to sink on opening

The local sharemarket is on track to fall sharply at Monday’s open, following US markets lower.

SPI futures are pointing to a drop of 0.9 per cent, or 68 points, at the start of trade, extending Friday’s fall of 0.8 per cent. Picture: NCA NewsWire/Gaye Gerard

The local sharemarket is on track to fall sharply at Monday’s open, following US markets lower, with iron ore miners again in focus after offshore falls on Friday night.

SPI futures are pointing to a drop of 0.9 per cent, or 68 points, at the start of trade, extending Friday’s fall of 0.8 per cent.

Wall Street stocks dropped on Friday, concluding another losing week for equities as markets look ahead to a key Federal Reserve decision amid fading market momentum after recent records.

US stocks were choppy for most of the week, shrugging off data that showed moderating consumer inflation and better-than-expected retail sales.

“The bull run is getting tired,” said FHN Financial’s Chris Low, who sees little in the near-term to propel further gains after a string of records this year.

“The economy is slowing down, inflation is running hot and the Fed is very likely to close the spigots,” he said.

The benchmark S&P 500 Index dropped 0.9 per cent to close at 4,432.99 points, while the broader Dow Jones Industrial Average shed 0.5 per cent to finish the week at 34,584.88.

The tech-rich Nasdaq Composite Index lost 0.9 per cent at 15,043.97.

All three major indices finished in the red for the second straight week, with the S&P 500 down 0.6 per cent after falling 1.7 per cent in the prior week.

Stocks have been under pressure for much of September, historically a soft period for the market.

Investors are looking ahead to a Federal Reserve meeting held on Wednesday and Thursday nights (AEST). The central bank has signalled it could begin to reduce stimulus later this year by tapering its bond purchases, but some analysts consider an announcement more likely at a future meeting.

Besides the Fed, global markets are focused on worries over supply chain problems and ongoing fears of the hit from Covid-19 to the global economy.

Locally, all eyes will be on minutes of the Reserve Bank’s September policy meeting, due to be released on Tuesday.

Additional reporting: AFP