ASX 200 set to open lower; NASDAQ ends down 3%

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ASX 200 set to open lower; NASDAQ ends down 3%

 ASX 200 set to open lower; NASDAQ ends down 3%
Image source: © Herrbullermann | Megapixl.com

Highlights

  • The Australian shares are set to open lower on Wednesday.

  • The benchmark ASX 200 index is likely to open 80 points or 1.2% lower.

  • On Wall Street, the Dow Jones fell 1.55%, the S&P 500 dipped 2%, and the NASDAQ ended 3% lower.

The Australian shares are set to open lower on Wednesday following a dismal overnight session of trade on Wall Street. Additionally, a fall in June consumer confidence in the US reignited concerns around aggressive interest rate hikes by the Federal Reserve. On the other hand, strong prices of commodities would keep boosting shares of energy and mining companies.

The benchmark ASX 200 index is likely to open 80 points or 1.2% lower, as per the latest ASX futures. On Tuesday, the ASX 200 surged 0.85% to 6,763.6 points.

The share price of Carsales.Com Ltd (ASX:CAR) would be in focus as the stock is set to return from its trading halt on Wednesday.

On Wall Street, the Dow Jones fell 1.55%, the S&P 500 dipped 2%, and the NASDAQ ended 3% lower.

RELATED ARTICLE: Wall Street extends losses on mixed economic data; QCOM, OXY rise

In Europe, the Stoxx 50 rose 0.3%, the FTSE gained 0.9%, the DAX surged 0.3%, and the CAC ended 0.6% higher. On the other hand, MSCI's gauge of stocks across the globe fell 0.44%.

Meanwhile, China eased a few ruled related to COVID-19 quarantine. It boosted shares as investors hoped for the global growth revival.

Bond yields

  • 2-year yield: US 3.12%, Australia 2.73% (US prices as of 2.58 PM in US)
  • 5-year yield: US 3.25%, Australia 3.47%
  • 10-year yield: US 3.20%, Australia 3.73%, Germany 1.62%

The US dollar index surged 0.452%, while the euro fell 0.51% to US$1.0529.

Oil prices rise

Oil prices ended on a strong note for the third day on Tuesday. It happened as UAE and Saudi Arabia struggled to increase production significantly while the West planned ways to cap the Russian oil prices.

  • Brent crude futures rose 2.5% to end at US$117.58 a barrel by 12:33 PM EDT (1633 GMT).
  • WTI crude closed 2% higher at US$111.76 a barrel.

RELATED ARTICLE: Can Australian economy dodge recession?

Gold prices inch lower

Gold prices fell on challenges posed by likelihood of higher interest rates. However, the concerns around recession also provided a boost.

  • US gold futures closed 0.2% lower at US$1,821.2.

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