ASX 200 to rebound after US tech stocks rally

The Australian share market is expected to start the week on a positive note, with a strong closing by the tech-heavy NASDAQ index on Friday likely to push domestic tech stocks.

According to the latest SPI futures, the ASX 200 is expected to open the day 28 points or 0.4% higher on Monday morning. The benchmark fell 1% on Friday.

On Wall Street, the Dow Jones fell 0.55%, the S&P 500 rose 0.1%, and the NASDAQ stormed 0.6% higher. The sales at retail stores, online, and restaurants decreased by 1.9% in December, the Commerce Department reported on Friday. Meanwhile, the decline in December also marked an end of record level retail sales that was started in October with a surge of 1.8% from its prior month.

A warning from the largest US bank JPMorgan Chase & Co that its profitability may fall below a medium-term target raised concerns on Wall Street.

Global stock markets stumbled again on Friday and US Treasury yields climbed as cautious investors worried about how imminent US interest rate hikes would affect the economy.

MSCI's gauge of stocks across the globe shed 0.36%. The pan-European STOXX 600 index closed down 1.01% and had its worst week since 26 November 2021. While FTSE fell 0.3%, CAC and DAX dropped 0.8% and 0.9%, respectively.

Bond yields and dollar

• 2-year yield: US 0.97%, Australia 0.68%
• 5-year yield: US 1.56%, Australia 1.50%
• 10-year yield: US 1.78%, Australia 1.85%, Germany -0.05%

The dollar index bounced 0.34% to 95.167, pulling away further from a two-month low hit this week.

Futures & Commodities

Gold futures were down 0.25% to US$1,816.85 per ounce. Silver decreased by 0.80% to US$22.977 per ounce, while copper fell 2.34% to US$4.4398.

Brent oil futures increased by 2.34% to US$86.45 per barrel and WTI crude was up 2.57% to US$84.23.

Meanwhile, benchmark iron ore futures slipped 2.3% to 722 yuan per tonne, while spot 62% iron ore inched up US$0.5 to $132.5 on Thursday.

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