AUS
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Highlights
The Australian share market is expected to end the week in the red.
According to the latest SPI futures, the ASX 200 is likely to open 58 points or 0.8% lower.
On Wall Street, the Dow Jones fell 1.9%, the S&P 500 slipped 2.4%, and the NASDAQ ended 2.75%.
The Australian share market is expected to end the week in the red following a dismal overnight trade on Wall Street. A drop in commodity prices may impact domestic mining and energy stocks.
According to the latest SPI futures, the ASX 200 is likely to open 58 points or 0.8% lower. On Thursday, the benchmark index fell 1.4% to 7,019.7 points.
On Wall Street, the Dow Jones fell 1.9%, the S&P 500 slipped 2.4%, and the NASDAQ ended 2.75% lower. Shares on Wall Street tumbled as the market awaited the release on Friday of the US consumer price index for May.
Investors now expect Fed to hike rates by 50 basis points next week, especially if US CPI data confirms an elevated inflation reading.
In Europe, the Stoxx 50 fell 1.7%, the FTSE dipped 1.5%, the CAC dropped 1.4%, and the DAX ended 1.7% lower.
MSCI's gauge of global stocks closed down 2.02%. Asian stocks fell overnight. MSCI's broadest index of Asia-Pacific shares outside Japan lost 0.5%.
Meanwhile, the ECB released new forecasts that raised inflation this year to 6.8% from a prior 5.1% and cut its growth outlook to 2.8% from 3.7% due to sky-high energy and food prices.
Bond yields
- 10-year yield: US 3.04%, Australia 3.60%, Germany 1.42% (US prices as of 4.25 PM in New York)
The euro fell 0.93% to US$1.0616 against the dollar, as the dollar index rose 0.73%.
Oil prices fall
Oil prices fell after parts of Shanghai imposed new lockdown measures. Still, strong gains in refined products supported crude prices near three-month highs.
- WTI crude fell 60 cents to settle at US$121.51 a barrel.
- Brent settled down 51 cents at US$123.07.
Gold prices inch lower
Gold prices slipped as higher Treasury yields and a firm dollar dimmed bullion's appeal.
- US gold futures fell 0.2% to US$1,852.80.
Meanwhile, Dalian and Singapore iron ore futures slipped on Thursday as traders continued to worry about weak profits at Chinese steel mills, with fresh COVID-19 alerts in Shanghai and Beijing adding to concerns.
The benchmark September iron ore contract on China's Dalian Commodity Exchange settled trading 0.3% lower at 924.50 yuan (US$138.33) a tonne, extending losses to a third day.
Similarly, three-month copper on the London Metal Exchange slipped 1.3% to US$9,600 a tonne by 1600 GMT after rising by 0.3% on Wednesday.
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