MARKET COMMENT: S&P/ASX 200 Poised to Fall As US Data Disappoint

2259 GMT [Dow Jones] Australia's S&P/ASX 200 is poised to extend Wednesday's 0.6% fall, with IG strategist Evan Lucas tipping a 0.8% opening decline to 4917, after disappointing U.S. economic data weighed on offshore equities and commodity prices. ADP said U.S. private sector jobs growth for March fell to 158,000 vs the 192,000 expected by the market, suggesting Friday's U.S. non-farm payrolls report will also disappoint. ISM's U.S. services sector PMI fell to 54.4 in March from 56 in February. Combined with increasing tensions on the Korean Peninsula, weak economic data saw the S&P 500 fall 1.1%, with the financials, materials and energy sectors leading declines. BHP's (BHP.AU) ADRs fell 1.2% to A$31.84, with spot iron ore down 0.4%, LME copper down 1.0% and Nymex crude down 2.8% (high inventories weighed on oil). With spot gold down 1.1% to US$1,557.45, Newcrest (NCM.AU) should remain weak. Lower metal price forecasts from UBS and Credit Suisse should also weigh on the materials sector. Credit Suisse slashed its price targets on Fortescue (FMG.AU), BHP (BHP.AU) and Rio Tinto (RIO.AU). The outcome of the BOJ's board meeting will be in focus amid expectations of further stimulus, while the ECB is due to meet later Thursday. Domestic retail sales and building approvals data are due at 0030 GMT. The S&P/ASX 200 index closed Wednesday at 4957.5. ([e-mail])

 
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