ASX 200 to end week in red on rate concerns - Kalkine Media

December 23, 2022 09:00 AM AEDT | By Ashish
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Highlights

  • The Australian share market is expected to end the week in the red.

  • According to the latest SPI futures, the ASX 200 would open 99 points or 1.4% lower.

  • On Wall Street, the Dow Jones fell 1.05%, the S&P 500 dipped 1.45%, and the NASDAQ ended 2.18% lower.

The Australian share market is expected to end the week in the red after Wall Street saw a selloff in the overnight trade as interest rate hike concerns dragged the market down after some strong economic data. As the year draws to a close, the hopes of a "Santa Claus rally" in the last days of 2022 are fading as investors prepare to close the book on the worst year for the stock market since 2008, the nadir of the Great Recession.

According to the latest SPI futures, the ASX 200 would open 99 points or 1.4% lower. On Thursday, the benchmark index ended 0.5% higher at 7,152.5 points.

On Wall Street, the Dow Jones fell 1.05%, the S&P 500 dipped 1.45%, and the NASDAQ ended 2.18% lower.

The pan-European STOXX 600 index lost 0.97% and MSCI's gauge of stocks across the globe shed 0.98%.

Emerging market stocks rose 1.16%. MSCI's broadest index of Asia-Pacific shares outside Japan closed 1.19% higher, while Japan's Nikkei rose 0.46%.

Bond yields

Treasury yields were mixed, and the yield curve inversion deepened after data showed US economy grew at a faster pace than previously reported.

  • Benchmark 10-year notes last fell 1/32 in price to yield 3.686%, from 3.684% late on Wednesday.
  • The 30-year bond last fell 1/32 in price to yield 3.7457%, from 3.744% late on Wednesday.

The dollar index rose 0.24%, while the euro was down 0.11% to US$1.0591.

Oil prices fall

Oil fell by over US$1 a barrel on Thursday in choppy trade as the impact of tighter US crude stocks due to a winter storm in the US was outweighed by fears that US Federal Reserve interest rate hikes and China's rising COVID-19 cases would dent demand.

  • WTI crude fell 1.02% to settle at US$77.49 per barrel.
  • Brent crude settled at US$80.98 per barrel, down 1.48% on the day.

Gold prices slip

Gold slid in opposition to the greenback's rise after data underscored US economic resiliency amid the Fed's battle against inflation.

  • Spot gold fell 1.3% to US$1,791.51 an ounce.

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