ASX 200 to fall following weak Wall Street closing

Image Source: biDaala studio,Shutterstock

Highlights

  • The Australian share market is likely to end the week on a disappointing note.
  • According to the latest SPI futures, the ASX 200 is expected to open the day 20 points or 0.3% lower.
  • On Wall Street, the Dow Jones ended down 0.89%, the S&P 500 was down 1.10%, and the NASDAQ pushed 1.30% lower.

The Australian share market is likely to end the week on a disappointing note following a weak overnight session on Wall Street. The domestic market would also be pressured by a likely fall in the shares of mining giant Rio Tinto as Serbia revoked its lithium project licences.

According to the latest SPI futures, the ASX 200 is expected to open the day 20 points or 0.3% lower. On Thursday, the benchmark index rose 0.15% to 7,342.4 points.

On Wall Street, the Dow Jones ended down 0.89%, the S&P 500 was down 1.10%, and the NASDAQ pushed 1.30% lower. The investors currently look to the US central bank's policy meeting next week for fresh guidance.

MSCI's US-centric all-country world index rose almost 1%. The broad pan-European FTSEurofirst 300 index closed up 0.51%.

European Central Bank head Christine Lagarde said euro zone inflation will decrease gradually over the year, adding that the ECB did not need to act as boldly as the Fed because of a different economic situation.

Bond yields

The two-year US Treasury yield rose 2.4 basis points at 1.049%. The yield on 10-year Treasury notes was up 0.5 basis points to 1.833% but was lower than the two-year high of 1.902% it breached on Wednesday.

The dollar index rose 0.128% to 95.728.

Oil prices rebound

Crude prices rebounded but settled slightly lower after traders took profit following some strong gains.

  • Brent crude settled down US$0.06 to US$88.38 a barrel.
  • WTI futures slid US$0.06 to settle at US$86.90 a barrel.

Gold prices settle flat

Gold and silver touched fresh two-month highs, lifted by worries surrounding inflation and Russia-Ukraine tensions.

  • US gold futures settled flat at US$1,842.60 an ounce.
  • Silver prices rose 2.1% to US$24.63.

Meanwhile, iron ore's most-traded May contract on China's Dalian Commodity Exchange ended daytime trading 1.3% higher at 742 yuan (US$116.97) a tonne, after touching a one-week high of 747.50 a tonne earlier in the session.

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