The Australian share market opened lower on the last day of trading week.
All eyes are on the Reserve Bank of Australia’s (RBA) latest monetary policy statement set to release today.
Bank of England announced a massive 50 basis points hike in interest rates.
The Australian share market opened lower on the last day of trading week following mixed cues from Wall Street. Investors would also be awaiting the release of the Reserve Bank of Australia’s (RBA) latest monetary policy statement at 11:30 AM (AEST) on Friday.
The ASX 200 index fell 2.50 points to 6,972.30 at the open on Friday. The ASX All Ordinaries index fell 0.026% to 7,205.6, while the A-VIX fell 4.942% to 15.194 at the open.
The benchmark index was trading at 6,971.70, down 3.20 points or 0.046% in the first ten minutes of trade. The index has fallen 0.39% in the past five days but has declined 6.35% on a year-to-date (YTD) basis.
However, the ASX 200 rebounded sharply soon after and was trading at 6,991.10, up 0.23% at 10:30 AM (AEST).
Global equity indices
Investors would closely track the monthly US non-farm payrolls data scheduled to be released today for cues on whether the tight labor market would continue to boost wages.
Meanwhile, Bank of England announced a massive 50 basis points hike in interest rates – its biggest hike in 27 years.
In Europe, the Stoxx 50 rose 0.6%, the FTSE surged 0.03%, the CAC gained 0.6%, and the DAX ended 0.6% higher.
On Thursday, US Treasury yields fell as a gloomy outlook from the Bank of England triggered global recession fears.
The yield on two-year Treasury fell to 3.0366%. Similarly, yield on 10-year bond dipped to 2.6846%.
Data Source: ASX (as of 5 August 2022, 10:30 AM AEST)
Image Source: © 2022 Kalkine Media®
Gold mining stocks were top performers after the yellow metal surged to its highest level since 5 July 2022. Energy stocks fell after the US oil price dipped below US$90 per barrel.
Meanwhile, on the ASX , three sectors were trading higher, while 8 were in the red.
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