Australian shares are poised to drop sharply amid an inflation sparked rout in global equities.
In a tweet, Mohamed El-Erian said: “The US government bond market is signaling a double worry for the Federal Reserve and markets in general: A sharp across-the-board sell-off coupled with some signs of stress to orderly market functioning.”P 500 industry sectors were lower near 1pm, with energy down more than 4 per cent even with the price of oil higher. Consumer discretionary and real estate also had shed at least 4 per cent.
“This is the kind of agnostic selling you see when everyone wants out of everything - even the best-performing sector of the SP 500, energy, is finally for sale,” Art Hogan, chief market strategist at National Securities, told Reuters.“This is the ongoing pricing of risk that happens when inflation continues to run hotter than expectations and in the wake of that, the Fed will likely have to be more aggressive.
The NYSE Fang + Index was down 4.9 per cent; Netflix fell 5.9 per cent; Amazon was 4.7 per cent lower.Local: NAB business survey May at 11.30am AEST
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Source: FinancialReview - 🏆 2. / 90 Read more »