All eyes on share market turmoil as RBA weights interest rate cut

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Australian markets will open nervously this morning after Wall Street tumbled overnight as fears about a slowing US economy prompt a global stock sell-off.

Investors will have one eye on the ASX and the other on the Reserve Bank of Australia ahead of yet another highly anticipated 2.30pm decision on whether to hike, hold or cut interest rates.

It was the second day of losses in a row in the US, after Friday's report showing US employers slowed their hiring last month by much more than economists expected panicked markets. Specialist Dilip Patel works at his post on the floor of the New York Stock Exchange, Monday, August 5, 2024. The US economy is still growing, and a recession is far from a certainty. The Fed has been clear about the tightrope it began walking when it started hiking rates sharply in March 2022: Being too aggressive would choke the economy, but going too soft would give inflation more oxygen and hurt everyone.Goldman Sachs economist David Mericle sees a higher chance of a recession within the next 12 months following Friday's jobs report.

"Markets tend to move higher like they're climbing stairs, and they go down like they're falling out a window," according to JJ Kinahan, CEO of IG North America.

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