ASX 200 to fall; Chinese economy slows down, US yields surge

Highlights

  • Australian shares are expected to give away most of Monday’s gains after the latest Chinese data showed slower-than-expected growth in its last quarter.
  • The domestic shares may also fall on Tuesday, likely hurt by losses in miners and energy stocks on the back of sinking commodity prices.
  • On Wall Street, the Dow Jones fell 0.05%, the S&P 500 gained 0.15%, and the NASDAQ Composite added 0.27%.

Australian shares are expected to give away most of Monday’s gains after the latest Chinese data showed slower-than-expected growth in its last quarter. The domestic shares may also fall on Tuesday, likely hurt by losses in miners and energy stocks on the back of sinking commodity prices.

According to the latest SPI futures, the ASX 200 is expected to open the day 22 points or 0.3% lower after rising 0.25% to 7,381.1 points in previous session.

On Wall Street, the Dow Jones fell 0.05%, the S&P 500 gained 0.15%, and the NASDAQ Composite added 0.27%.

Image Source: @Kalkine Media

Bond yields and dollar

  • The five-year US Treasury yields rose as high as 1.193%, their highest since February 2020, extending a two-week rising streak.
  • The yields on 30-year US bonds were only slightly higher, flattening the gap between five-year and 30-year debt to its narrowest since early 2020.

                       

Miners drag ASX post flat opening; BHP’s iron ore exports fall again

 

  • The US dollar index inched as investors expected the Federal Reserve to increase interest rates sooner than previously expected to arrest rising price pressures.
  • The dollar index gained 0.1% against a basket of other currencies to 94.04, after earlier rising to 94.17.

 

Oil prices mixed

Oil prices remained mixed after hitting multi-year highs.

  • Brent crude oil futures were down 0.7% to US$82.26 a barrel by 2:30 p.m. EST (1830 GMT) after hitting $86.04, their highest since October 2018
  • WTI crude was 0.1% higher at US$82.40 a barrel, after hitting $83.87, their highest since October 2014.

Gold prices ease

Gold prices eased amid rising US Treasury yields. Spot gold rose up 0.2% to US$1,770.30 an ounce.

Meanwhile, Bitcoin last rose 0.75% to US$62,003.35.

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