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Highlights
The Australian share market is expected to start the week on a muted note.
According to the latest SPI futures, the ASX 200 is poised to open massive 296 points or 4.3% lower on Tuesday.
On Wall Street, the Dow Jones fell 2.8%, the S&P 500 dipped 3.9%, and the NASDAQ ended 4.7% lower.
The Australian share market is expected to start the week on a muted note following an inflation-sparked rout in global equities. In addition, a fall in iron ore prices amid concerns of fresh COVID-19 outbreaks in China could further dent sentiment.
According to the latest SPI futures, the ASX 200 is poised to open massive 296 points or 4.3% lower on Tuesday. Last Friday, the benchmark index fell 1.25% to 6,932 points.
The global stock markets slipped on Monday sky-high inflation reading in the US triggered worries about even more aggressive policy tightening in a big week for central banks.
On Wall Street, the Dow Jones fell 2.8%, the S&P 500 dipped 3.9%, and the NASDAQ ended 4.7% lower. Monday's sell-off pushed the US S&P 500 index - which has dropped over 20% since a recent record close - into a bear market.
In Europe, the Stoxx 50 fell 2.7%, the FTSE dipped 1.5%, the CAC dropped 2.7%, and the DAX ended 2.4 lower. An index of world stocks dropped 3.7%.
Chinese blue chips 1.17% and Hong Kong's Hang Seng suffered a 3.39% slide. Japan's Nikkei fell 3.01% and South Korea's Kospi shed 3.52%.
Bond yields
- 10-year yield: US 3.36%, Australia 3.67%, Germany 1.63% (US prices as of 4.21 PM in New York)
Rising US yields and the flight to safety pushed the dollar index to a high last seen in December 2002. By late afternoon, the index was up 0.7% at 105.18.
Meanwhile, Fed, Bank of England and Swiss National Bank are scheduled to hold their monetary policy meetings this week.
Investors in Asia focused on the risk of new coronavirus lockdowns, with Beijing's most populous district of Chaoyang announcing three rounds of mass testing to quell a "ferocious" outbreak that emerged at a bar.
Crude oil prices rise
Oil prices rose on Monday in a session of volatile trade as tight global supplies outweighed worries that demand would be pressured by a flare-up in COVID-19 cases in Beijing and more interest rate hikes.
- Brent crude rose 26 cents to settle at US$122.27 a barrel.
- WTI rose 26 cents to settle at US$120.93 a barrel.
Gold prices fall
Gold and palladium suffered sharp declines on Monday, as the dollar rallied on bets for steep interest rate hikes by the Fed, eroding appeal for bullion and other precious metals.
- Gold futures shed 2.4% to US$1,829.80.
Meanwhile, bitcoin tanked 11.7% to the lowest since December 2020 at US$23,462. Leading cryptocurrencies including bitcoin and ether posted double-digit losses, as news that US cryptocurrency lending company Celsius Network had frozen withdrawals spooked investors.
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