The benchmark S&P/ASX200 opened flat and then bled to currently lose -0.36% at 6116, up from the lows of 6101 and down from the 6154 highs.
Wall Street was ending lower over a stalemate in US fiscal stimulus talks which has filtered through the Australian share market, with traders eyeballing precious metals and commodity markets.
Firstly, there has been some upbeat sentiment on the words from the US President Donald Trump who suggested that there could be capital gains tax.
the news initially helped the S&P 500 mark a six-month high, but a stalemate in negotiations over fiscal stimulus weighed.
Then, a collapse in gold prices following a moderate rise in real yields, not something corporate America wants to see.
Lower real rates are the central bank lever to support the recovery and compensate for supply, so it’s a theme that is not going to vanish anytime soon, but nonetheless, troublesome for Wall Street.
In other news, White House economic advisor Kudlow said China was fulfilling its trade deal commitments on agricultural purchases, an encouraging tone ahead of the formal high-level review due Saturday.
ASX 200 levels
The index met a crossroads in the 6170s at daily and weekly resistance and the 61.8% Fibonacci retracements of the 2020 sell-off.
Bears have stepped in here and now eye the 6055 support area.
However, a break back below the 20-week moving average would open the case for a continuation to the downside.
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