Wall Street stabilises after global sell-off, ASX to open higher

Wall Street stabilises after global sell-off, ASX to open higher

Wall Street stabilises after global sell-off, ASX to open higher

Updated 8 February 2018, 8:25 AEDT

Despite some volatility, US markets are beginning to stabilise, but traders are still wondering whether the recent market sell-off is a temporary blip or a deeper correction.

Australian shares are tipped to open slightly higher today, but with a little volatility.

Over the past week, stock markets around the world have lost about $US4 trillion from the global sell-off — which is about 44 times more than Bill Gates' total wealth.

European stock markets finished higher overnight, snapping a seven-day losing streak.

The London, Paris and Frankfurt indexes gained between 1.5 and 2 per cent.

The Australian dollar fell by 1 per cent to 78.2 US cents.

It also dropped against the British pound (-0.5pc), euro (-0.2pc) and Japanese yen (-1pc).

As for local economic news, NAB will release its fourth-quarter business confidence report this morning.

What happened on Wall Street?

It was a volatile day on Wall Street with the main indexes trading sharply higher in the morning — then falling in and out of negative territory throughout the afternoon (New York time).

The tech-driven Nasdaq fell 0.2 per cent in the final hour of trade, before lifting to break-even point.

The S&P 500 rose 0.5 per cent, while the Dow Jones index gained 1 per cent.

Those relatively small percentage movements were closer to what markets expected, compared to the Dow's 4.6 per cent (1,175 point) drop earlier this week.

Traders were still bracing for further volatility in the near future, as they tried to determine if the wild swings these past few days were the beginning of a deeper market correction, or just a temporary blip in the US market's nine-year bull run.

More to come.