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Highlights
The Australian share market is likely to open lower on Wednesday.
According to the latest SPI futures, the ASX 200 is expected to open 110 points or 1.5% lower.
On Wall Street, the Dow Jones fell 2.4%, the S&P 500 dropped 2.8%, and the NASDAQ tumbled 3.95%.
The Australian share market is likely to open lower on Wednesday following a heavy overnight sell off in US tech shares as inflation concerns, and China's COVID-19 curbs continue to dampen risk appetite.
According to the latest SPI futures, the ASX 200 is expected to open 110 points or 1.5% lower. On Tuesday, the benchmark index sank 2.1% to 7,318 points.
US shares fell on Tuesday, with the NASDAQ posting its steepest one-day rout since September 2008, while European stocks extended losses for a third session as investors warily awaited US tech earnings and fretted over global growth.
The tech-heavy NASDAQ led Wall Street lower, closing at its lowest since late 2020. On Wall Street, the Dow Jones fell 2.4%, the S&P 500 dropped 2.8%, and the NASDAQ tumbled 3.95%.
In Europe, the Stoxx 50 fell 1%, the FTSE rose 0.1%, the CAC dipped 0.5%, and the DAX ended 1.2% lower.
Bond yields
- 2-year yield: US 2.48%, Australia 2.32% (US prices as of 4.59 PM in New York)
- 5-year yield: US 2.73%, Australia 2.87%
- 10-year yield: US 2.72%, Australia 3.10%, Germany 0.81%
In currency markets, the dollar rose 0.63% against a basket of rivals to a fresh two-year high.
On the other hand, the MSCI world equity index fell 13.6 points, or 2.03%, to 655.01. China's blue-chip index fell another 0.8% after its worst day in two years on Monday.
Meanwhile, investors also eyed the US Federal Reserve meeting next week. Markets have been fretting that an aggressive pace of tightening by the Fed could derail the global economy, which has only just started to recover from the pandemic.
The European Central Bank (ECB) will next meet on 9 June 2022 where policymakers are expected to put a firm end date on bond buys and provide clearer guidance on interest rates.
Oil prices rebound
Oil prices rebounded on China's plans to support its economy.
- Brent crude futures ended up 2.6% at US$104.99 a barrel.
- WTI contracts were up 3.2% at US$101.70.
Gold prices inch higher
Spot gold edged up as investors sought safe-haven assets.
- Gold futures settled up 0.43% at US$1,901.40 per ounce.
Meanwhile, Chinese stainless-steel futures fell for a second straight session on Tuesday, following a big drop in the prices of its raw material nickel, while poor downstream consumption due to the COVID-19 situation also dented sentiment.
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