ASX to fall as tech stocks weigh on Wall Street

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Australian shares are set to open slightly lower as tech stocks dragged Wall Street, G7 ponders a cap on Russian oil prices, follow for live updates.

Australian shares are set to open slightly lower as tech stocks dragged Wall Street down and the G7 pondered a cap on Russian oil prices and a ban on gold imports.P 500 -0.2% Nasdaq -0.7%Russia defaulted on its external sovereign bonds for the first time in a century, the culmination of ever-tougher Western sanctions that shut down payment routes to overseas creditors.

Wall Street analysts are sticking with their bullish earnings forecasts for this quarter, and Morgan Stanley’s Lisa Shalett says they need a reality check. “Economists have begun to cut their top-down economic forecasts for GDP, and yet fundamental company analysts are sitting there like deer in headlights not knowing what to do with numbers,” the Morgan Stanley Wealth Management chief investment officer said on Bloomberg TV.

“We just don’t see how we don’t get a recalibration here from the analysts that take the E in P/Es down.” Michael Burry, the founder of Scion Asset Management who was made famous by “The Big Short,” suggested on Twitter that the “Bullwhip Effect” happening in the retail sector may lead to the Federal Reserve reversing rate increases and its quantitative tightening policy.

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