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Highlights
The Australian share market is likely to end the week in the red.
According to the latest SPI futures, the ASX 200 is expected to open 130 points or 2% lower on Friday.
In the US, the Dow Jones was down 2.4%, the S&P 500 fell 3.25%, and the NASDAQ ended 4.1% lower.
The Australian share market is likely to end the week in the red following a disappointing overnight trade on Wall Street. The domestic shares would be under pressure after the US Federal Reserve's biggest rate hike in over two decades fanned fears of a recession.
According to the latest SPI futures, the ASX 200 is expected to open 130 points or 2% lower on Friday. On Thursday, the benchmark index fell 0.15% to 6,591.1 points.
The global stocks fell again on Thursday and government bonds hovered near multi-year highs after a series of rate rises from global central banks in the US, the UK and Switzerland in the last 24 hours stoked recession worries.
In the US, the Dow Jones was down 2.4%, the S&P 500 fell 3.25%, and the NASDAQ ended 4.1% lower. The Fed's rate rise on Wednesday was accompanied by projections that showed US economic growth slowing to a below-trend rate of 1.7%, and policymakers expect to cut interest rates in 2024.
In Europe, the Stoxx 50 fell 3%, the FTSE dropped 3.1%, the CAC dropped 2.4%, and the DAX ended 3.3% lower.
MSCI's gauge of stocks across the globe fell 2.25% to hover near a 19-1/2-month low.
Bond yields
- 10-year yield: US 3.20%, Australia 3.99%, Germany 1.71% (US prices as of 4.41 PM in New York)
Oil prices rise
Oil prices rose on Thursday in topsy-turvy trading after the US announced new sanctions on Iran, and as energy markets stayed focused on supply concerns that have sent prices soaring this year.
- Brent crude futures settled at up US$1.30, or 1.1%.
- WTI crude futures ended up 2%, at US$117.58.
Gold prices rebound
Gold rose 1% in volatile trade on Thursday as the dollar pulled back sharply on the US central bank's aggressive policy outlook, bringing some of the safe-haven lure back to the metal.
- Spot gold was last up 0.9% at US$1,849.68 per ounce by 1:54 PM ET (1754 GMT).
- US gold futures settled up 1.7% at US$1,849.90.
Meanwhile, Dalian iron ore fell for a fifth straight session on Thursday and hit its lowest in three weeks, dragged down by a pessimistic demand outlook for the steelmaking ingredient from top steel producer China.
The most-traded iron ore for September delivery on China's Dalian Commodity Exchange settled 2.5% lower at 867.50 yuan (US$129.35) a tonne, after earlier falling to 861.50 yuan, its weakest since 26 May 2022.
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