The Australian sharemarket is set to open lower today as US tech stocks suffer in the wake of Donald Trump’s decision to beef up measures to bar Chinese firms from investing in American tech.
At 8.30am (AEST) the Australian futures index was down 11 points at 6127. The Australian dollar has fallen to 73.43 US cents, down from 73.75 US cents yesterday.
US stocks initially rose as Trump said he would use a strengthened national security review panel to deal with potential threats from Chinese acquisitions of US technology, instead of imposing China-specific restrictions.
The decision was seen by investors as a somewhat softer approach than plans reported earlier to block firms with at least 25 per cent Chinese ownership from buying US tech firms.
But later on Wednesday, White House economic adviser Larry Kudlow said Trump’s announced plan did not indicate a softened stance on China.
Falls across the energy, resource and health care sectors pushed the Australian share market into the red on Tuesday, amid increasing investor fears of a global trade war.
The benchmark S&P/ASX200 index closed down yesterday 0.21 per cent, at 6197.6 while the broader All Ordinaries was down 0.26 per cent at 6292.1 points, following big falls on global markets overnight.