ASX 200 likely to fall after poor night on Wall Street

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Highlights

  • The Australian share market is expected to open marginally lower Wednesday.

  • According to the latest SPI futures, the ASX 200 would start the day 3 points lower.

  • On Wall Street, the Dow Jones fell 0.0091%, the S&P 500 dropped 0.16%, and the NASDAQ ended 0.59% lower.

The Australian share market is expected to open marginally lower Wednesday following a poor night on Wall Street. Investors cautiously eyed the US Federal Reserve Chair's speech for any hints on the magnitude of further interest rate hikes and China's Manufacturing data for November, both scheduled later today.

According to the latest SPI futures, the ASX 200  would start the day 3 points lower. On Tuesday, the benchmark index ended 0.3% higher at 7,253.3 points.

On Wall Street, the Dow Jones fell 0.0091%, the S&P 500 dropped 0.16%, and the NASDAQ ended 0.59% lower.

In Europe, the Stoxx 50 fell 0.03%, the FTSE gained 0.5%, the CAC rose 0.1%, and the DAX ended 0.2% lower. MSCI's gauge of stocks across the globe shed 0.09%.

Bond yields

US Treasury yields rose in choppy trading as investors waited for upcoming data including third-quarter US data on gross domestic product (GDP), Chicago manufacturing numbers, factory activity based on the Institute for Supply Management and non-farm payrolls for November due out Friday.

  • Benchmark 10-year notes rose 4.4 basis points to 3.746%, from 3.702% late on Monday.
  • The 30-year bond rose 5.4 basis points to yield 3.8032%, from 3.749%.
  • The 2-year note was last was up 0.2 basis points to yield 4.4732%, from 4.471%.

On the other hand, the US dollar index rose 0.188%, while the euro was down 0.12% to US$1.0325.

Oil prices rise

Oil prices climbed on hopes for a relaxation of China's strict COVID-19 controls, which had fueled demand concerns.

  • US crude futures settled up 1.24% at US$78.20 per barrel.
  • Brent finished at US$83.03, down 0.2%.

Gold prices rise

Gold prices rose with help from the dollar's retreat and hopes for less aggressive US rate hikes going forward.

  • Spot gold added 0.5% to US$1,750.10 an ounce.
  • US gold futures gained 0.50% to US$1,749.00 an ounce.


 


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