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Highlights
The Australian share market is likely to extend losses on Wednesday.
According to the latest SPI futures, the ASX 200 is expected to open 60 points or 0.9% lower.
On Wall Street, the Dow Jones fell 0.5% and the S&P 500 dipped 0.4%, but the NASDAQ inched 0.2% higher.
The Australian share market is likely to extend losses on Wednesday following a mixed overnight trade in the US.
According to the latest SPI futures, the ASX 200 is expected to open 60 points or 0.9% lower. On Tuesday,
the benchmark index fell 3.55% to 6,686 points.
Global stocks and bonds traded on a choppy note after strong US inflation data released last Friday fueled bets that the US Federal Reserve must tighten monetary policy more aggressively to tame urging prices.
Investors expect Fed to announce a 75-basis-point rate increase - the largest since November 1994 - at the end of its two-day policy meeting on Wednesday.
On Wall Street, the Dow Jones fell 0.5% and the S&P 500 dipped 0.4%, but the NASDAQ inched 0.2% higher. The S&P 500 recorded its fifth straight daily fall, marking its longest losing streak since early January.
In Europe, the Stoxx 50 fell 0.8%, the FTSE dropped 0.3%, the CAC dipped 1.2%, and the DAX ended 0.9% lower. MSCI's gauge of stocks around the world fell 0.25% to levels last seen in November 2020.
MSCI's broadest index of Asia-Pacific shares outside Japan closed 0.59% lower, while Japan's Nikkei lost 1.32%.
Bond yields
- 10-year yield: US 3.48%, Australia 3.95%, Germany 1.74% (US prices as of 4.24 PM in New York)
The dollar index was up 0.2% after hitting a high of 105.46.
Oil prices fall
Oil prices settled lower on Tuesday on fears the Fed will surprise markets with a higher-than-expected interest rate hike.
- Brent crude futures settled down 0.9%, to US$121.17 a barrel.
- WTI crude declined 0.7%, to settle at US$118.93 a barrel.
Gold prices ease
Gold gave up small gains in range-bound trading on Tuesday as the dollar resumed its climb and hit a 20-year high, eroding bullion's safe-haven appeal on investor bets of aggressive rate hikes by Fed.
- Spot gold fell 0.4% to US$1,811.80 per ounce by 12:33 PM EDT (1633 GMT).
- US gold futures fell 1% to US$1,813.40.
Meanwhile, in crypto markets, where bitcoin and ether hovered near 18-month lows, have also been drubbed by interest rate expectations and crypto lender Celsius Network's decision to freeze withdrawals. Bitcoin, which fell as low as US$20,816, recovered to US$22,599 on Tuesday.
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