ASX 200 likely to rise despite weak Wall Street closing

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Highlights

  • The Australian share market is expected to rebound on Tuesday.

  • According to the latest SPI futures, the ASX 200 is likely to open 33 points or 0.45% higher.

  • On Wall Street, the Dow Jones fell 0.13%, the S&P 500 fell 0.39%, and the NASDAQ ended 1.09% lower.

The Australian share market is expected to rebound on Tuesday despite weak closing on Wall Street in the overnight trade. The market however remained cautious on the US Federal Reserve meeting minutes later this week, which could provide the trajectory of rate hikes, and more COVID-19 curbs in China.

According to the latest SPI futures, the ASX 200  is likely to open 33 points or 0.45% higher. On Monday, the benchmark index fell 0.2% to 7,139.3 points.

Meanwhile, BlueScope Steel Limited (ASX:BSL), Brickworks Limited (ASX:BKW), Fortescue Metals Group Limited (ASX:FMG), and Star Entertainment Group Ltd (ASX:SGR) are a few ASX-listed companies whose  annual general meetings (AGMs) are scheduled today.

On Wall Street, the Dow Jones fell 0.13%, the S&P 500 fell 0.39%, and the NASDAQ ended 1.09% lower.

In Europe, the Stoxx 50 fell 0.4%, the FTSE dropped 0.1%, the CAC dipped 0.2%, and the DAX ended 0.4% lower. MSCI's broadest index of world shares fell 0.92%.

Bond yields

Longer duration US Treasury yields dipped slightly at the start of a Thanksgiving holiday-shortened week, following data indicating the US economy was slowing.

  • The yield on 10-year notes was down to 3.8119%.
  • The 30-year Treasury bond yield slid to 3.8961%.

On the other hand, the dollar index rose 0.926%, while the euro fell 0.87% to US$1.0234.

Oil prices fall

Oil prices touched their lowest level since early January on concerns of lower Chinese fuel demand owing to the COVID-19 lockdowns as well as reports that Saudi Arabia and other OPEC members are holding talks on a potential output increase.

  • Brent crude futures for January fell 5.32% to US$75.82 a barrel.
  • WTI crude futures for December were down 5.19% to US$83.07.

Gold prices dip

Gold prices slipped to their lowest in over a week as the dollar extended gains, while the market's attention turned to Fed’s November meeting minutes due this week.

  • Spot gold fell 0.8% to US$1,735.89 an ounce.
  • US gold futures slipped 0.90% to US$1,736.10 an ounce.


 


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