ASX 200 set for dull start on dismal Wall Street cues

Image Source: ESB Professional,shutterstock

Highlights

  • The Australian share market is expected to open on a negative note.
  • According to the latest SPI futures, the ASX 200 is likely to open Monday 49 points or 0.7% lower.
  • On Wall Street, the Dow Jones fell 1.3%, the S&P 500 dropped 1.9%, and the NASDAQ tumbled 2.7%.

The Australian share market is expected to open on a negative note following dismal end to Wall Street last Friday. Domestic stocks are likely to take a cue from the weakness in US tech stocks, while concerns of inflation and monetary policy tightening by the US Federal Reserve persist.

According to the latest SPI futures, the ASX 200 is likely to open Monday 49 points or 0.7% lower. The benchmark had lost 2.3% on Friday.

On Wall Street, the Dow Jones fell 1.3%, the S&P 500 dropped 1.9%, and the NASDAQ tumbled 2.7%. Both the S&P 500 and the NASDAQ recorded their biggest weekly falls since the market crashed in March 2020.

The US Fed’s monetary policy statement, scheduled to be released on Thursday, could provide investors with a clearer view.

Bond yields and dollar 

  • 2-year yield: US 1.00%, Australia 0.83%
  • 5-year yield: US 1.56%, Australia 1.58%
  • 10-year yield: US 1.76%, Australia 1.91%, Germany -0.07%

The dollar index fell 0.138% to 95.627 while the yen was last down 0.40% at US$113.6300. The euro was last up 0.30% at US$1.1344.

In Europe, the German, French and Italian indices fell nearly 2%, with the broad Euro STOXX index of 600 ending 1.84% lower. MSCI's all-country world index fell 1.74%.

 Gold prices fall

Gold fell on Friday amid a broader decline in commodities. However, it was set to gain for a second week as inflation and geopolitical risks lifted its safe-haven appeal.

  • US gold futures settled down 0.6% at US$1,831.80 an ounce.

 Oil prices dip

Oil prices slid for a second day, pressured by an unexpected rise in US crude and fuel inventories while investors took profits after global oil benchmarks touched seven-year highs.

  • Brent crude futures fell 49 cents, or 0.6%, to settle at US$87.89 a barrel. 
  • WTI futures settled 41 cents down at US$85.14 a barrel.

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