The Australian equity market is pointed to a soft start to the trading day after US stocks slide on a Fed report t hat suggested the end of US stimulus.
The Dow finish the session down 53.51 points at 12951.61 while the S&P500 index traded down 6.52 points to finish the day at 1365.66.
On the economic front the US GDP grew at a 3 percent annual rate, this is the fastest gain since the second quarter of 2010, according to the Commerce Department. The economy expanded at a 1.8 percent pace in the third quarter.
The dollar rallied against both the euro and yen after comments from the Federal Reserve Chairman Bernanke reduced speculation that the central bank will provide more monetary stimulus. The EURUSD has traded down from overnight highs of 1.3486 to recent lows of 1.3319.
Gold and Silver both tumbled overnight after the Federal Reserve suggested that there would be no more monetary stimulus to bolster the US economy. Gold (see above chart) traded down from overnight highs of 1790.50 to recent lows of 1990.20.
The Volatility Index which is considered the best gauge of fear in the market has finished the session above 18.
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Bloomberg, Dow Jones News