ASX 200 to fall on inflation concerns; Webjet full-year results today

Be the First to Comment Read

ASX 200 to fall on inflation concerns; Webjet full-year results today

ASX 200 to fall on inflation concerns; Webjet full-year results today
Image source: © Kiankhoon | Megapixl.com

Highlights

  • The Australian share market is expected to open lower on Thursday.

  • According to the latest SPI futures, the ASX 200 is likely to open 135 points or 1.9% lower.

  • On Wall Street, the Dow Jones fell 3.6%, the S&P 500 dipped 4%, and the NASDAQ ended 4.7% lower.

The Australian share market is expected to open lower on Thursday following a selloff on Wall Street. The market would be negatively impacted by renewed global inflationary fears, hitting domestic growth stocks, while concerns over China's economic recovery are expected to impact export-centric mining stocks.

According to the latest SPI futures, the ASX 200 is likely to open 135 points or 1.9% lower. On Wednesday, the benchmark index rose 1% to 7,182.7 points.

Meanwhile, the share price of Webjet (ASX:WEB) would be closely tracked today as the company is slated to release its full-year results. On the other hand, Westpac Banking Corp (ASX:WBC) would trade ex-dividend this morning for its fully franked interim dividend of 61 cents per share.

Global stocks

Global stocks fell and the dollar strengthened for the first time in four sessions on Wednesday as concerns about rising inflation on economic growth soured sentiment.

The mood was underscored by a 9% surge in British consumer prices and a faster-than-expected acceleration in inflation in Canada.

British inflation surged to its highest annual rate since 1982 as energy bills soared, while Canadian inflation rose to 6.8% last month, largely driven by rising food and shelter prices, Statistics Canada data showed.

On Wall Street, the Dow Jones fell 3.6%, the S&P 500 dipped 4%, and the NASDAQ ended 4.7% lower. It was the worst session for Dow Jones’ since 2020.

MSCI's gauge of stocks across the globe shed 2.74%, while in Europe, the pan regional STOXX 600 index closed down 1.14%.

Bond yields

Treasury yields fell, although a steep path for rates remained the prevailing market consensus as the benchmark 10-year note yield hit a one-week high of 3.015% after Powell's hawkish comments.

The yield on US10-year note fell 8.1 basis points to 2.890% on Wednesday after a soft US housing starts number.

The dollar index rose 0.581%, while the euro was down 0.8% to US$1.0463. The Japanese yen strengthened 0.92% to 128.23 per dollar.

Oil prices fall

Oil prices fell as traders grew less worried about a supply crunch after government data showed US refiners ramped up output.

  • WTI crude settled down 2.5% at US$109.59 per barrel.
  • Brent settled at US$109.11, down 2.52% on the day.

Gold prices inch lower

Gold prices were little changed despite the risk-off environment as looming US interest rate hikes and a resurgent dollar dimmed the metal's shine.

  • Spot gold was up 0.1% at US$1,816.06 an ounce.

RELATED ARTICLE: Dow suffers worst day as Wall Street retreats; TGT, LOW stocks plunge

RELATED ARTICLE: 3 top DeFi projects to explore in second half of 2022

RELATED ARTICLE: NST to EVN: ASX gold stocks on radar as yellow metal’s prices shoot up

Disclaimer

Speak your Mind

Featured Articles

Ad
kalkine logo

GET A FREE STOCK REPORT

Top Penny Picks under 20 Cents to Fit Your Pocket! Get Exclusive Report on Penny Stocks For FREE Now.

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK