Australian shares are poised to open lower. In New York, shares turned down in afternoon trade as volatility persisted amid uncertainty about the path for interest rates and pre-Nvidia earnings nervousness.<\/p>\n
Nvidia will report quarterly results after Wednesday\u2019s closing bell (Thursday AEDT). The results \u201cwill set the tone for the wider tech sector over the coming few weeks into year-end\u201d, Capital Economics deputy chief markets economist Jonas Goltermann said in a note. The results are poised to generate a potential swing in Nvidia\u2019s shares of up to 6.5 per cent.<\/p>\n
In yet another sign of the market divide on Nvidia and technology valuations, DoubleLine Capital founder Jeffrey Gundlach said he recommends a 20 per cent cash position to hedge against a market implosion \u2013 one he sees brewing in unsafe lending to private companies and overblown hopes for artificial intelligence.<\/p>\n
As for the US rate outlook, US Federal Reserve vice chairman Philip Jefferson struck a neutral stance in a speech, saying that labour market risks have been rising while inflation risks have eased.<\/p>\n
\u201cWith respect to the path of the policy rate going forward, I will continue to determine policy based on the incoming data, the evolving outlook, and the balance of risks. I always take a meeting-by-meeting approach. This is an especially prudent approach at this time.\u201d<\/p>\n
The Fed\u2019s policymakers next meet from December 9 to 10.<\/p>\n
Market highlights<\/p>\n
ASX 200 futures are pointing down 83 points or 1 per cent to 8576.
All US prices near 3.15pm New York time:<\/p>\n
AUD -0.8% to US64.85\u00a2Bitcoin -3% to $US91,533On Wall St: Dow -1.4% S&P -1.3% Nasdaq -1.3%VIX +3.44 to 23.27Gold -1.6% to $US4016.93 an ounceBrent oil -0.5% to $US64.06 a barrelIron ore +1.6% to $US104.25 a tonne10-year yield: US 4.13% Australia 4.27%Today\u2019s agenda<\/p>\n
CommSec said it is expecting results on Tuesday from ALS, Plenti, TechnologyOne and Webjet.<\/p>\n
The Reserve Bank of Australia will release the minutes from its latest policy meeting. Across the Tasman, the Reserve Bank of New Zealand is scheduled to release its latest business expectations survey.<\/p>\n
\u201cThe RBA\u2019s goal of getting inflation under control is going to take longer than anticipated, with the board likely needing to keep its foot on the brake for longer, putting rate-sensitive sectors under pressure,\u201d said eToro analyst Farhan Badami.<\/p>\n
\u201cLooking ahead to December\u2019s rate decision, while October\u2019s unemployment rate was a healthy report on paper, it still didn\u2019t provide the signal the RBA is looking for. In fact, it has essentially dampened any chance of an interest rate cut in the near-term, with the data suggesting that businesses are still holding on to staff even as growth slows, keeping wage pressures alive and making it harder for inflation to drift back to the RBA\u2019s 2 to 3 per cent target.<\/p>\n
\u201cMichele Bullock and the board have already been clear that they are in no rush and won\u2019t risk premature easing, even if that means being seen as a Scrooge with December\u2019s rate call. For now, the chance of a Christmas miracle cut for borrowers is near non-existent, and rates are likely to stay on hold until the board gets a clearer sign that inflation is trending lower.\u201d<\/p>\n
Top stories<\/p>\n
Libs to link immigration cuts to housing, health and schools<\/a> | The Coalition is looking at reducing Australia\u2019s annual intake by at least 100,000 below current levels, and maybe more.<\/p>\n Future Fund pivots to gold and active funds in a \u2018permacrisis\u2019 world<\/a> | The investment giant has outlined its plan to deal with a rise in social and geopolitical tensions that could make it difficult to fulfil its long-term return targets.<\/p>\n Andrew and Angus who? Leadership rivals a blank canvas, says poll<\/a> | More than a third of voters have never heard of Andrew Hastie or Angus Taylor, the men who could challenge Sussan Ley for the Liberal leadership.<\/p>\n DroneShield house broker turns on \u2018dead money\u2019 stock after CEO sale<\/a> | The hot defence technology business shocked investors last week when chief executive Oleg Vornik sold $50 million in shares, his entire stake in the company.<\/p>\n