ASX 200 expected to drop 1.25 per cent at open

Billions of dollars will be wiped off the value of the Australian share market this morning amid increasing fears of a global recession. A fresh fiscal crisis has engulfed the United Kingdom, where new Prime Minister Liz Truss' tax cuts pushed the pound to a 37-year low against the US dollar. There's even the prospect of the pound falling to parity with the American dollar. In the US, the Dow Jones fell 486 points on Friday – its lowest levels in nearly two years. The futures market is tipping the ASX to drop 1.25 per cent when markets open this morning.