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Highlights
Australian share market is likely to start the week on a muted note.
According to the latest SPI futures, the ASX 200 is expected to open 94 points or 1.25% lower.
On Wall Street, the Dow Jones fell 2.8%, the S&P 500 dipped 3.6%, and the NASDAQ ended 4.2% lower.
The Australian share market is likely to start the week on a muted note following weak closing by US stocks on Friday. Investors are pricing in an interest rate hike by the Reserve Bank of Australia (RBA), in line with its global peers to tame surging inflation but consequently sparking sell-off in equities on growth concerns.
As per a Reuters poll, the RBA will raise rates for the first time in more than a decade on Tuesday and join a long list of central banks now expected to tighten policy at a much faster pace than previously thought.
According to the latest SPI futures, the ASX 200 is expected to open 94 points or 1.25% lower on Monday. On Friday, the ASX 200 charged 1.05% higher to 7,435 points.
US equities were under pressure after data showed that monthly inflation surged by the most since 2005 while US consumer spending increased more than expected in March amid strong demand for services. Also, first quarter US labor costs surged by the most in 21 years, pointing to rising wage inflation, supporting US Federal Reserve policy tightening ahead of its scheduled meeting next week.
On Wall Street, the Dow Jones fell 2.8%, the S&P 500 dipped 3.6%, and the NASDAQ ended 4.2% lower.
In Europe, the Stoxx 50 rose 0.7%, the FTSE surged 0.5%, the CAC gained 0.4%, and the DAX ended 0.8% higher. Emerging market stocks rose 2.08%.
Bond yields
- 2-year yield: US 2.71%, Australia 2.42%
- 5-year yield: US 2.95%, Australia 2.89%
- 10-year yield: US 2.93%, Australia 3.12%, Germany 0.94%
The dollar index fell 0.415%, with the euro up 0.47% to US$1.0543.
Oil prices fall
Oil prices fell on Friday, reversing late in the volatile session, pulled downward by the US heating oil contract that plummeted by more than 20% at one point on the day of its expiration.
- WTI futures settled at US$104.69 down 67 cents or 0.64%.
- Brent crude futures settled at US$109.34, up US$1.7 or 1.63%.
Gold prices rise
Gold prices gave up some gains after earlier rallying as much as 1.3% when the dollar retreated, and the precious metal was set to end the month lower on bets of aggressive Fed policy tightening.
- Spot gold was last up 0.1% to US$1,895.86 an ounce.
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