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Highlights
The Australian share market is set to open the day in the red.
According to the latest SPI futures, the ASX 200 is likely to open 10 points or 0.15% lower on Friday.
On Wall Street, the Dow Jones rose 0.65%, the S&P 500 climbed 0.95%, and the NASDAQ ended 1.6% higher.
The Australian share market is set to open the day in the red despite Wall Street closing higher. However, the latest SPI futures may not yet have captured a late rally on Wall Street.
A widening weakness among the prices of commodities is expected to cap gains for the local miners and energy stocks.
According to the latest SPI futures, the ASX 200 is likely to open 10 points or 0.15% lower on Friday. On Thursday, the benchmark index rose 0.3% to 6,528.4 points.
Meanwhile, shares of Westpac Banking Corp (ASX:WBC) shareholders would be in focus on Friday as Australia’s oldest bank is scheduled to reward its shareholders with a fully franked 61 cents per share interim dividend.
Stocks in global markets rose on Thursday as US Treasury yields fell to two-week lows, while copper was at 16-month lows as investors worried about a possible global economic slowdown. On Wall Street, the Dow Jones rose 0.65%, the S&P 500 climbed 0.95%, and the NASDAQ ended 1.6% higher.
In Europe, the Stoxx 50 fell 0.8%, the FTSE dipped 1%, the CAC fell 0.6%, and the DAX ended 1.8% lower.
Federal Reserve Chairman Jerome Powell testified before Congress for a second day, a day after saying the Fed is committed to cutting inflation at all costs, and acknowledged a recession was "certainly a possibility."
Manufacturing growth is slowing worldwide partly because China's COVID-19 curbs and Russia's invasion of Ukraine have disrupted supply chains and added to inflation problems.
Bond yields
- 10-year yield: US 3.09%, Australia 3.85%, Germany 1.42% (US prices as of 4.24 PM in New York)
Against the dollar, the euro declined 0.5% to US$1.0509. It earlier declined below a key US$1.05 level for the third time this week. The euro also declined 1.4% versus the Japanese currency to 141.85 yen.
Oil prices fall
Oil prices ended lower as investors weighed the risk of a recession.
- Brent crude futures fell US$1.69 to settle at US$110.05 a barrel
- WTI futures dropped US$1.92 to settle at US$104.27
Gold prices dip
Gold gave up initial gains and edged lower on Thursday as the dollar regained momentum after Powell doubled down on the central bank's policy tightening aimed at taming inflation.
- US gold futures settled down 0.5% to US$1,829.8.
Meanwhile, copper prices fell as rising interest rates and weak economic data fed worries about demand. Copper on the London Metal Exchange (LME) hit its lowest level since February 2021.
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