ASX 200 to fall; NASDAQ crashes over 4%; oil slips

Image Source: © Kiankhoon | Megapixl.com

Highlights

  • The Australian share market is expected to extend its losses to Tuesday.

  • According to the latest SPI futures, the ASX 200 is likely to open 97 points or 1.35% lower.

  • On Wall Street, the Dow Jones fell 2%, the S&P 500 dropped 3.2%, and the NASDAQ crashed 4.3%.


The Australian share market is expected to extend its losses to Tuesday after another selloff on Wall Street in the overnight trade. The domestic market is likely to track a sharp fall in world equities as rate hike worries continue to dent risk appetite and oil prices tumble on threatened demand outlook.

According to the latest SPI futures, the ASX 200 is likely to open 97 points or 1.35% lower. The benchmark index fell 1.2% to 7,120.7 points on Friday.

Meanwhile, the ASX-listed tech stocks such as Appen (ASX:APX) and Block Inc (ASX:SQ2) are expected to trade in the red due to weakness in US tech sector.

Global stock indices

Stock indices around the world fell sharply, oil prices sank about 6% and the US dollar finished just off a 20-year high as investors fled risk and sought safe havens due to worries about inflation and slower global economic growth.

On Wall Street, the Dow Jones fell 2%, the S&P 500 dropped 3.2%, and the NASDAQ crashed 4.3%.

It was the first time since March 31, 2021, that the S&P 500 closed below 4,000. NASDAQ's trough for the session was its lowest since November 2020 in a sell-off led by mega-cap growth stocks. Both the S&P and NASDAQ on Friday posted their fifth straight week of declines - their longest losing streaks in roughly a decade.

In Europe, the Stoxx 50 fell 2.8%, the FTSE dipped 2.3%, the CAC declined 2.8%, and the DAX ended 2.2% lower.

MSCI's gauge of stocks across the globe fell 3.09% on Monday after hitting its lowest level since December 2020, while emerging market stocks lost 1.63%.

Bond yields

  • 2-year yield: US 2.59%, Australia 2.72% (US prices as of 4.59 PM in New York)
  • 5-year yield: US 2.95%, Australia 3.24%
  • 10-year yield: US 3.03%, Australia 3.56%, Germany 1.09%

The greenback has risen for five straight weeks along with US Treasury yields. The dollar then pared gains, down 0.077%, while the euro was up 0.07% to US$1.0558.

Oil prices fall

Oil prices fell as coronavirus lockdowns in China, the top oil importer, fed worries about energy demand.

  • WTI crude recently fell 6.45% to US$102.69 per barrel.
  • Brent was at US$105.43, down 6.19% on the day.

 

Gold prices dip

The precious metal was sold off after US bond yields rose. Gold fell and bitcoin plunged to its lowest level since July 2021.

  • Spot gold fell 1.6% to US$1,852.58 an ounce.
  • US gold futures fell 0.94% to US$1,857.10 an ounce.

Meanwhile, in crypto currencies, bitcoin fell along with Wall Street.

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