ASX 200 to fall; US stocks end in green amid wild swings

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ASX 200 to fall; US stocks end in green amid wild swings

 ASX 200 to fall; US stocks end in green amid wild swings
Image source: Phongphan,shutterstock

Highlights

  • The Australian share market is likely to fall at the open on Tuesday.
  • According to the latest SPI futures, the ASX 200 is expected to open the day 173 points or 2.45%.
  • On Wall Street, the Dow Jones ended up 0.29%, the S&P 500 rose 0.28%, and the NASDAQ settled 0.63% higher.

The Australian share market is likely to fall at the open on Tuesday, tracking an overnight sell-off on Wall Street amid hawkish US Federal Reserve, rising geopolitical tensions and COVID-19 concerns. However, US equities pared losses in the later part of the session and settled higher as dip buyers emerged.

According to the latest SPI futures, the ASX 200 is expected to open the day 173 points or 2.45%. The benchmark index fell 0.5% to 7,139.5 points on Monday.

On Wall Street, the Dow Jones ended up 0.29%, the S&P 500 rose 0.28%, and the NASDAQ settled 0.63% higher.  Retail, industrial and energy stocks contributed to the rebound on S&P 500 into the close after the gauge lost nearly 4%.

The rout on Wall Street worsened on Monday over the prospect of a Russian attack on Ukraine and anticipated Fed tightening following its Wednesday meeting kicked a January stock selloff into overdrive. Fed is set to update its policy trajectory at a Wednesday meeting.

The MSCI world equity index was down 2.55%. The Europe-wide STOXX 600 index fell 3.8%, marking its worst day since June 2020.

Bond yields 

  • 2-year yield: US 0.96%, Australia 0.84% (US prices as of 4.08 PM in New York).
  • 5-year yield: US 1.54%, Australia 1.61%.
  • 10-year yield: US 1.77%, Australia 1.93%, Germany -0.10%.

The dollar index rose 0.25%, with the euro down 0.14% to US$1.1324.

 Oil prices fall

Oil prices fell as a stronger US dollar weighed on the commodity.

  • Brent crude prices fell 1.81% to US$86.30 a barrel.
  • WTI crude was down 2% at US$83.44 per barrel.

Gold prices edge higher

Gold prices rose amid demand for safe haven as political tensions surged in Ukraine.

  • Spot gold prices jumped 0.44% to US$1,841.28 an ounce.

Meanwhile, Bitcoin was down another 5%, as the cryptocurrency hit its lowest level in six months. The cryptocurrency has lost more than half of its value since hitting an all-time high of US$69,000 in November.

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