The Australian sharemarket looks set to fall, tracking losses on Wall Street overnight, but losses may prove shortlived on news that China and the US are meeting this week for trade talks.
ASX futures were down 31 points, or by 0.4 per cent, predicting the S&P/ASX 200 index would extend losses for a third session as investors await further market updates from companies during the Macquarie Australia conference in Sydney.
Equities fell on Wall Street after number of companies curbed their profit forecasts overnight including US carmaker Ford which suspended its full-year guidance and said it would take a $US1 billion hit from tariffs.
Trump overnight appeared to move away from back-and-forth negotiations with countries on tariffs and instead said he would prescribe tariff levels and trade concessions for partners looking to avoid higher duties.
But a statement after the close of US trading has sent US futures soaring on news China Vice Premier He Lifeng and US Treasury Secretary Scott Bessent would travel to Switzerland later this week to commence trade talks.
In commodities, Brent oil jumped 3 per cent to $US62.05 a barrel, rebounding from its lowest closing price in four years and gold edged higher.
Source: https://www.afr.com/markets/equity-markets/asx-to-drop-as-trump-tariffs-slash-wall-st-profits-20250506-p5lx4f