The Australian share market is expected to fall on Wednesday after a sell-off on Wall Street due to a drop in consumer confidence and growing recession fears.
The ASX SPI 200 futures fell by 1.2 per cent to 6,591, by 6: 30 am AEST.
The Australian dollar was down 0.2 per cent at 69.08 US cents.
The benchmark ASX 200 rose 0.9 points higher to 6,763 on Tuesday.
The Dow Jones Industrial Average fell by 491.27 points, or 1.5 per cent, to 30,946. The S&P 500 lost 2 per cent to 3,821, and the Nasdaq Composite fell 3 per cent to 11,181.
Apple, Microsoft, and Amazon were the heaviest drags on the tech-heavy Nasdaq.
The S&P 500 is on track for its biggest drop in the first half of the year since 1970.
All three indexes are on course to notch two straight quarterly declines for the first time since 2015.
Tim Ghriskey, senior portfolio strategist Ingalls Snyder said that at some point aggressive selling is going to dissipate but it doesn't seem like it's going to be anytime soon.
The index dropped 4.5 points in a month to 98.7 - the lowest since February 2021, according to the new US consumer confidence data.
Consumers' assessment of current business and labour market conditions was little changed, but their short-term outlook for income, business and labour market conditions was the weakest since March 2013.
The Conference Board said that the index suggested a weaker growth in the second half of 2022 and a growing risk of a recession by the end of the year.
Consumers hate inflation and this is depressing consumer confidence via the expectation channel even though households see labor market conditions as strong, said Conrad DeQuadros, senior economic advisor at Brean Capital.
Retail stocks fell on the data. The sportswear company posted weaker than expected guidance, but the shares of Nike fell 7 per cent.
Spot gold was down 0.2 per cent and selling for US 1,821. On the oil markets, Brent crude was worth US 111.74 per barrel, while West Texas crude was up 1.9 per cent to US 111.16 per barrel.
In Europe, the pan-European STOXX 600 index gained 0.2 pc along with Germany's DAX 0.3 pc and Britain's FTSE 0.9 pc.