ASX 200 to fall; Dow Jones tumbles 1,000 points; Macquarie results today

Image Source: © Stbernardstudio | Megapixl.com

Highlights

  • The Australian share market is expected to end the week in the red.

  • According to the latest SPI futures, the ASX 200 is likely to open 109 points or 1.5% lower.

  • On Wall Street, the Dow Jones fell 3.1%, the S&P 500 dropped 3.56%, and the NASDAQ ended 5% lower.


The Australian share market is expected to end the week in the red following a weak overnight closing on Wall Street. Investors were concerned that aggressive central bank policies around the world to curb rising inflation may restrain growth.

According to the latest SPI futures, the ASX 200 is likely to open 109 points or 1.5% lower. On Thursday,

benchmark index rose 0.8% to 7,364.7 points.

Meanwhile, Macquarie Group Ltd (ASX:MQG) is among the ASX-listed companies slated to release its full-year results today.

On Wall Street, the Dow Jones fell 3.1%, the S&P 500 dropped 3.56%, and the NASDAQ ended 5% lower. Dow Jones fell more than 1000 points overnight. Similarly, NASDAQ’s 5% fall was its biggest single-day plunge since June 2020

In Europe, the Stoxx 50 fell 0.8%, the FTSE rose 0.1%, the CAC dipped 0.4%, and the DAX ended 0.5% lower.

Fears of a recession, as the Bank of England suggested after it hiked rates earlier in London, quashed enthusiasm from US Federal Reserve Chair Jerome Powell's remarks on Wednesday when he said policymakers were not considering 75 basis-point moves in the future.

Britain's pound and government bond yields fell sharply after the BoE raised rates to their highest level since 2009 to counter inflation heading above 10% and warned the UK economy was at risk of recession.

MSCI's gauge of global stock performance shed 2.55% as it tumbled to lows last seen in March 2021.

Bond yields

  • 2-year yield: US 2.70%, Australia 2.69% (US prices as of 4.21 PM in New York)
  • 5-year yield: US 3.00%, Australia 3.13%
  • 10-year yield: US 3.03%, Australia 3.38%, Germany 1.04%

The dollar index rose 0.946% after falling sharply on Wednesday following the Fed's rate hike. It is up more than 7% so far this year.

Oil prices rise

Oil prices rose as a stronger dollar offset supply concerns after the European Union's plans for new sanctions against Russia, including an embargo on crude in six months. Traders noted OPEC+ again rebuffed consumer calls for a faster pace of output rises.

  • WTI futures rose 45 cents to settle at US$108.26 a barrel.
  • Brent settled up 76 cents at US$110.90 a barrel.

Gold prices inch higher

Investors were buying the safe haven asset amid the selloff in the equity market.

  • US gold futures ended up 0.4% at US$1,875.70 an ounce, after paring gains of more than 2%.

RELATED ARTICLE: TRON (TRX) crypto rockets on USDD launch, what's next for this token?

RELATED ARTICLE: Five crypto platforms in Australia that provide highest staking rewards

RELATED ARTICLE: What is RocketFuel crypto and when is this payment token launching?


 


Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and