ASX 200 to fall; Wall Street dips after tech stock slump; NASDAQ down 1.9%

2 min read | July 24, 2022 03:10 PM PDT | By Ashish

ASX 200 to fall; Wall Street dips after tech stock slump; NASDAQ down 1.9% — Image source: © Stbernardstudio | Megapixl.com

Highlights

The Australian shares are likely to open lower on Monday.

The ASX 200 index would start the week 12 points or 0.2% lower.

Last Friday, the ASX 200 ended 2.8 points lower at 6,791.5 points.

The Australian shares are likely to open lower on Monday after dismal night on Wall Street on Friday on account of a fall in big tech firms such as Meta and Alphabet. But export-based shares are expected to get a lift from strong commodity prices, thereby limiting losses.

The ASX Futures indicate that the benchmark ASX 200 index would start the week 12 points or 0.2% lower. Last Friday, the ASX 200 ended 2.8 points lower at 6,791.5 points.

Meanwhile, investors would be closing watching the US Federal Reserve’s interest rate hike decision due on Thursday. It would be worth seeing if Fed effects another 75-bps rate hike in the second straight month amid rising inflation.

On the other hand, South32 Ltd (ASX:S32) is scheduled to release its fourth quarter update today.

In US, the S&P 500 dipped 0.9%, the Dow Jones fell 0.45%, and the NASDAQ ended 1.9% lower. The gains recorded by Dow Jones and S&P 500 marked their biggest weekly percentage gains in four.

In Europe, the Stoxx 50 was flat, the FTSE rose 0.1%, the DAX also ended flat, and the CAC rose 0.2%. The MSCI index rose 3.1% for the week.

Bond yields

The yield on 10-year US Treasury notes fell on account of muted economic data on Friday, which raised concerns related to global economy.

2-year yield: US 2.97%, Australia 2.69%
5-year yield: US 2.84%, Australia 3.22%
10-year yield: US 2.75%, Australia 3.43%

The US dollar index declined 0.047%, while the euro fell 0.18% to US$1.021.

Oil prices fall

Crude prices on Friday closed below US$95 per barrel for the first time since April. The dip in prices was due to muted global demand outlook and the resumption of some Libyan crude oil production.

WTI crude ended 1.7%, lower at US$94.70 a barrel.

Brent crude futures fell 0.6% to US$103.20.

Gold prices rise

Gold prices ended higher after five-week of fall on softening US dollar and bond yields.

Spot gold rose 0.2% to US$1,721.29 per ounce by 2:21 PM EDT (1821 GMT).

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