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Australia shares set to fall, tracking Wall Street slump

Published 26/08/2015, 09:28 am
© Reuters.  Australia shares set to fall, tracking Wall Street slump
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SYDNEY, Aug 26 (Reuters) - Australian shares are poised for a weak start on Wednesday following a stunning recovery in the previous session, tracking Wall Street which gave up all its early gains to end with losses.

Some investors could, however, take solace from China which cut interest rates and lowered the level of reserves banks must hold for the second time in as many months on Tuesday. ID:nL4N1101XE

Local share price index futures YAPcm1 fell 0.9 percent to 5,080, a 57.3-point discount to the underlying S&P/ASX 200 index .AXJO . On Tuesday, the benchmark climbed 2.7 percent to 5,137.3 recovering more than half of Monday's 4.1 percent drop.

A drop in gold prices will weigh on miners such as Newcrest NCM.AX .

Some of the index's major stocks trade ex-dividend on Wednesday including Coca-Cola Amatil CCL.AX , JB Hifi JBH.AX , Primary Health Care PRY.AX , QBE QBE.AX , Santos STO.AX and Woodside Petroleum WPL.AX .

New Zealand's benchmark NZX 50 index .NZ50 rose 0.38 percent to 5,634.3 in early trade.

For a summary of overnight action across global markets, double click on AU/CALL

For a digest of the day's business stories in Australian newspapers, double click on PRESS/AUB

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