The ASX is poised to drop in early trade after reports the Trump administration is weighing economic sanctions on Chinese officials, businesses and financial institutions.
The SPI 200 futures contract was lower by 63 points, or 1.08 percent, to 5,744.0 at 0800 AEST on May 27, indicating losses in early trade.
IG Markets analyst Kyle Rodda said the drop would be “a bit of a breather” after the 2.93 percent rally on Tuesday.
US stocks overnight pared gains late in trading after Bloomberg News reported US President Donald Trump was considering sanctions, reinforcing comments earlier from White House adviser Larry Kudlow.
Kudlow said the president was “so miffed with China on the virus and other matters that the trade deal is not as important to him as it once was”.
He referred to Trumps Phase 1 trade deal with China reached in January, which remains in tact.
Trump has said he is preparing to take action against China this week over its effort to impose national security laws on Hong Kong but has not given details.
The benchmark S&P 500 had crossed 3,000 points for the first time since March 5 before dropping back late in Tuesdays session.
The S&P 500 closed 1.2 percent higher, and the Dow Jones Industrial Average gained nearly 530 points, or 2.2 percent. Markets around the world also rose.
In Australia on Tuesday, constructionRead More – Source