ASX to fall, Nasdaq paces weakness on Wall Street


Source: afr.com afr.com

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On Wall Street, communications services slid 1.6 per cent, pacing seven of the 11 S & P 500 industry sectors lower. Real estate was the top advancer. Morgan Stanley US equity strategist Mike Wilson reiterated his concern that earnings estimates are too high and record narrow breadth suggests the broader market could suddenly acknowledge this risk. “Our top concern is that earnings estimates remain too high and are likely to fall rapidly as revenue growth is the next shoe to drop, in our view.” In a note, JP Morgan strategists argue for defensive positioning: “With short-term US yields near 5...