ASX 200 to open lower; Westpac half-year results today

Image Source: ©Miflippo | Megapixl.com

Highlights

  • The Australian share market is likely to begin the week on a muted note.

  • According to the latest SPI futures, the ASX 200 is expected to open 51 points or 0.7% lower.

  • On Wall Street, the Dow Jones fell 0.3%, the S&P 500 dipped 0.6%, and the NASDAQ ended 1.4% lower.


The Australian share market is likely to begin the week on a muted note following poor closing on Wall Street last Friday. The domestic investors continue to remain concerned about aggressive interest rate hikes and economic slowdown after Reserve Bank of Australia (RBA) raised inflation forecasts drastically last week.

According to the latest SPI futures, the ASX 200 is expected to open 51 points or 0.7% lower on Monday. On Friday, the benchmark index declined 2.2% to 7,205.6 points.

Meanwhile, Westpac Banking Corp (ASX:WBC) shares would be in focus on Monday as Australia’s oldest bank is slated to release its half-year results.

On Wall Street, the Dow Jones fell 0.3%, the S&P 500 dipped 0.6%, and the NASDAQ ended 1.4% lower.

US Labor Department data showed the unemployment rate fell last month to its pre-pandemic low of 3.5% as job growth moderated. Average hourly earnings rose 5.5% from a year ago, slightly slower than the previous month's increase.

The data underscored challenges the Fed and other central banks face as they battle rising inflation with China's lockdowns causing persistent supply chain disruptions and the war in Ukraine pressuring food prices.

 

In Europe, the Stoxx 50 fell 1.8%, the FTSE dipped 1.5%, the CAC dipped 1.7%, and the DAX ended 1.6% lower.

The pan-European STOXX 600 fell 1.91% as regional shares chalked up their worst week in two months. MSCI's gauge of global equity performance fell 0.99% and emerging market stocks lost 2.57%.

Bond yields

  • 2-year yield: US 2.73%, Australia 2.72%
  • 5-year yield: US 3.08%, Australia 3.20%
  • 10-year yield: US 3.13%, Australia 3.46%, Germany 1.13%

The dollar index rose 0.077%, with the euro up 0.06% to US$1.0546. The yen weakened 0.31% at 130.56 per dollar.

Oil prices rise

Oil prices climbed for a third straight session, shrugging off concerns about global economic growth as impending European Union sanctions on Russian oil raised the prospect of tighter supply.

  • WTI prices rose US$1.51 to settle at US$109.77 a barrel.
  • Brent crude settled up US$1.49 at US$112.39.

Gold prices surge

Gold rose on a weaker dollar but the prospect of aggressive rate hikes from the Fed led bullion to post its third straight weekly decline.

  • US gold futures settled 0.4% higher at US$1,882.80 an ounce.

Meanwhile, Bitcoin fell 1.76% to US$35,891.06.

RELATED ARTICLE: PME, MDR, CSL: A look at three ASX healthcare growth stocks

RELATED ARTICLE: Here’s how BHP is advancing in its divestment strategy

RELATED ARTICLE: Will net-zero policies have a critical play in the Election?


 


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