ASX to drop as Australia maintains AAA rating

·Personal Finance Editor
·2-min read
The ASX board showing company price changes and Prime Minister Anthony Albanese.
The ASX is expected to fall at the open after Australia maintained its AAA credit rating. (Source: Getty)

ASX: The local market is expected to fall this morning after Wall Street extended losses overnight.

This comes after Aussie shares extended gains yesterday from the previous session as a lift in commodities prices helped the market close firmly higher.

Wall Street: US stocks were under pressure on Tuesday, with the Nasdaq losing about 3 per cent as selling ramped for technology shares especially.

Ukraine crisis: The Group of Seven (G7) economic powers have agreed to explore imposing a ban on transporting Russian oil that has been sold above a certain price, aiming to hit Russian President Vladimir Putin's war chest.

The war in Ukraine and its dramatic economic fallout - in particular soaring food and energy inflation - dominated this year's summit of the group of rich democracies at a castle resort in the Bavarian Alps.

Glowing report: Rating agency Moody's has affirmed Australia's AAA credit rating, citing Labor's productivity-enhancing reforms that focus on lifting women's participation in the workforce.

Treasurer Jim Chalmers welcomed the rating affirmation on Tuesday night, saying Australia remained one of only nine countries to hold a AAA credit rating from the three major rating agencies.

Ka-ching: While consumer confidence may somewhat be under a cloud, economists don't expect an impact on spending habits just yet.

The Australian Bureau of Statistics will release retail trade figures for May today, capturing the impact of the Reserve Bank's 25-basis-point increase in the cash rate that month.

Taking action: NSW commuters are set for further delays from industrial action by rail workers today as negotiations continue over pay, conditions and safety.

The strained negotiations come as the NSW government also confronts a strike by teachers on Thursday, and with public sector nurses and midwives voting to pressure it further on pay and staffing ratios.

Must watch: Netflix might be the number one streaming service on the market — but that's not always a good thing, at least according to a new note from Bank of America. Here’s why.

- With AAP

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