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Highlights
The Australian share market is poised to open lower on Tuesday.
According to the latest SPI futures, the ASX 200 is likely to open 160 points or 2.15% lower.
On Wall Street, the Dow Jones rose 0.7%, the S&P 500 climbed 0.6%, and the NASDAQ ended 1.3% higher.
The Australian share market is poised to open lower on Tuesday despite Wall Street reversing losses on Monday. The US stocks saw sharp sell off on Friday. The domestic market is expected to be weighed by concerns of interest rate hikes and commodity prices dip on fears of tightening COVID-19 restrictions in China.
According to the latest SPI futures, the ASX 200 is likely to open 160 points or 2.15% lower. On Friday, the benchmark index fell 1.6% to 7,473.3 points.
On Wall Street, the Dow Jones rose 0.7%, the S&P 500 climbed 0.6%, and the NASDAQ ended 1.3% higher.
European stocks slid to a one-month low as the Stoxx 50 fell 2.2%, the FTSE declined 1.9%, the CAC dipped 2%, and the DAX ended 1.5% lower.
MSCI's benchmark for global equity markets fell 0.41% to 668.85. Emerging markets stocks fell 2.61%. Overnight, Asian markets had their worst daily decline in over a month on fears Beijing would go back into a COVID-19 lockdown.
Bond yields
- 2-year yield: US 2.63%, Australia 2.35% (US prices as of 4:59 PM in New York)
- 5-year yield: US 2.86%, Australia 2.91%
- 10-year yield: US 2.82%, Australia 3.13%, Germany 0.83%
The dollar index rose 0.65% and climbed to a two-year high. It touched a peak of US$1.0695 against the euro.
This week will also see the release of US growth data, European inflation figures and a Bank of Japan policy meeting, which will be watched for any hints of a response to a sharp fall in the yen, which has lost 10% in about two months.
Oil prices fall
Oil prices fell 10% on Monday, the lowest level in two weeks on increasing concerns about the global energy demand outlook due to extended COVID-19 lockdowns in Shanghai and potential rate increases in US.
- Brent futures fell 4.1% to settle at US$102.32 a barrel.
- WTI crude declined 3.5%, to settle at US$98.54.
Gold prices
Looming US interest rate hikes took the shine off gold.
- Gold fell 1.8% to US$1,895.47 per ounce.
- US gold futures dipped nearly 2% to US$1,896.10.
Meanwhile, Dalian iron ore fell nearly 11% on Monday to a more than one-month low, as a broad-based decline in global markets and concerns over steel demand in China dragged down prices.
The most-traded iron ore on China's Dalian Commodity Exchange for September delivery tumbled 10.7% to 795 yuan (US$121.36) a tonne, the lowest closing price since 23 March 2022.
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