Wall Street closes down for 3rd straight session on US Fed rate hike worry; ASX to fall – ABC News

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Wall Street closes down for 3rd straight session on US Fed rate hike worry; ASX to fall
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Australian shares are expected to start the day lower, tracking losses on Wall Street. 
ASX futures were down 57 points or 0.8 per cent to 6,861 at 6:48am AEST.
At the same time, the Australian dollar was down at 68.54 US cents.
Overnight, US stocks closed lower for a third straight session as a rise in job openings fuelled fears the US Federal Reserve has another reason to maintain its aggressive path of interest rate hikes to combat inflation.
The benchmark S&P 500 index has tumbled more than 5 per cent since Fed Chair Jerome Powell on Friday reaffirmed the central bank's determination to raise interest rates even in the face of a slowing economy.
Labor demand showed no signs of cooling as US job openings rose to 11.239 million in July and the prior month was revised sharply higher.
A separate report showed consumer confidence rebounded strongly in August after three straight monthly declines.
"They have to weaken the labour market and how are they going to do that? They are going to jam rates and make things so expensive that people are going to pull back, demand is going to fall off, and people are going to get laid off," said Ken Polcari, managing partner at Kace Capital Advisors in Boca Raton, Florida.
"It locks them in even further."
The data increases the focus on the August non-farm payrolls data due on Friday.
The Dow Jones Industrial Average fell 308 points, or 1 per cent, to 31,791, the S&P 500 lost 44 points, or 1.1 per cent, to 3,986 and the Nasdaq Composite dropped 135 points, or 1.1 per cent, to 11,883.
The pan-European STOXX 600 index also gave up earlier gains to be down 0.7 per cent, and MSCI's world equity index fell 1 per cent.
On oil markets, Brent crude oil tumbled, trading at just below $US100 a barrel, by 06:59am AEST.
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AEST = Australian Eastern Standard Time which is 10 hours ahead of GMT (Greenwich Mean Time)


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