ASX 200 to fall after Wall Street closes mixed; oil slips again

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Highlights

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

  • According to the latest SPI futures, the ASX 200 is likely to open 7 points or 0.1% lower.

  • On Wall Street, the Dow Jones fell 0.26%, the S&P 500 rose 0.25%, and the NASDAQ ended 1% higher.


The Australian share market is expected to open lower on Wednesday following a mixed overnight trade on Wall Street. The global markets remained volatile amid growing recession risks and commodity prices retreated on demand concerns arising due to COVID-19 lockdowns in China.

According to the latest SPI futures, the ASX 200 is likely to open 7 points or 0.1% lower. On Tuesday, the benchmark index fell 1% to 7,051.2 points.

On Wall Street, the Dow Jones fell 0.26%, the S&P 500 rose 0.25%, and the NASDAQ ended 1% higher. The Dow Jones traded in a more than 850 point range from its intraday early high to its midday low during the session.

In Europe, the Stoxx 50 rose 0.8%, the FTSE surged 0.4%, the CAC soared 0.5%, and the DAX ended 1.2% higher.

MSCI's gauge of stocks across the globe gained 0.08%.

Bond yields

US Treasuries rallied, with the yield on the benchmark 10-year note tumbling from a more than three-year high to below 3% as investors reassessed the inflation outlook before US consumer price index (CPI) data is released Wednesday.

  • 2-year yield: US 2.61%, Australia 2.66% (US prices as of 4.22 PM in New York)
  • 5-year yield: US 2.91%, Australia 3.21%
  • 10-year yield: US 2.99%, Australia 3.56%, Germany 1%

The dollar index was last up 0.193%, and the euro was down 0.24% to US$1.053.

The Japanese yen weakened 0.10% versus the greenback at 130.40 per dollar, while Sterling was last trading at US$1.2314, down 0.14% on the day.

The Australian and New Zealand dollars sank to two-year lows on Tuesday as a rout in global equities shook risk assets of all stripes and worries about a slowdown in China hammered commodities.

Oil prices fall

Oil prices fell in volatile trade as the market balanced impending European Union sanctions on Russian oil with demand concerns related to coronavirus lockdowns in China, a strong dollar and growing recession risks.

  • WTI recently fell 3.35% to US$99.64 per barrel.
  • Brent crude was at US$102.26, down 3.47% on the day.

Gold prices inch lower

Spot gold fell 1.0% to US$1,835.86 an ounce as investors eyed the rising dollar and waited for Wednesday's inflation data.

Meanwhile, bitcoin was up 3.7% after earlier falling to its lowest level since July 2021. Tuesday's gain recovered some losses from its 11.8% plunge on Monday.

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