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ASX to open lower after Wall St dips

Shares are expected to start lower on the ASX, after US GDP contraction and the possibility of a delayed US presidential election rattled investors on Wall Street.

The Australian SPI 200 futures contract was lower by 28.0 points, or 0.47 per cent, to 5986.0 points at 0800 AEST on Friday.

In the US overnight, June-quarter gross domestic product (GDP) data showed the US economy suffered its steepest contraction since the Great Depression, as business activity ground to a halt due to lockdowns aimed at fighting the coronavirus pandemic.

US jobless claims rose last week, adding to signs the momentum of economic recovery has slowed since then.

Investor nervousness was also heightened after US President Donald Trump floated the idea of a delay in elections, although this was rejected by both Democrats and his fellow Republicans in Congress.

Technology shares bucked the trend with Amazon, Apple, Facebook and Google’s parent Alphabet all reporting bigger profits than forecast.

Still, the Dow Jones Industrial Average ended 0.85 per cent lower to 26,313.65, the S&P 500 lost 0.38 per cent to 3,246.22 though the Nasdaq Composite added 0.43 per cent to 10,587.81.

Meanwhile, the Australian dollar was buying 71.88 US cents at 0800 AEST, up from 71.53 US cents at Thursday’s close.

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