ASX 200 to rebound after Wall Street rises; oil extends fall

2 min read | July 07, 2022 08:14 AM AEST | By Ashish

ASX 200 to rebound after Wall Street rises; oil extends fall — Image source: © Stbernardstudio | Megapixl.com

Highlights

The Australian share market is likely to rise on Thursday.

The latest ASX futures indicate that the ASX 200 would open 41 points or 0.6% higher.

On Wall Street, the Dow Jones rose 0.23%, the S&P 500 surged 0.36%, and the NASDAQ climbed 0.35%.

The Australian share market is likely to rise on Thursday after positive overnight closing on Wall Street. The domestic investors are expected to track their US counterparts after Federal Reserve’s latest monetary policy minutes revealed officials focused on a large interest rate hike at their June meeting. Meanwhile, oil prices continued to decline.

The latest ASX futures indicate that the ASX 200 would open 41 points or 0.6% higher. On Wednesday, the ASX 200 declined 0.5% to 6,594.5 points.

Global indices

According to the latest US economic data, job openings declined in America by less-than-expected levels in the month of May, implying tight labour market, indicating a looming recession. Additionally, the US government department reported 11.3 million job openings at May’s end, down marginally from all-time high hit in March.

On Wall Street, the Dow Jones rose 0.23%, the S&P 500 surged 0.36%, and the NASDAQ climbed 0.35%.

In Europe, the Stoxx 50 rose 1.9%, the FTSE surged 1.2%, the CAC advanced 2%, and the DAX ended 1.6% higher.

Bond yields

Benchmark 10-year yields were last at 2.913%, falling from 3.498% on 14 June, the highest seen since April 2011.

The US dollar index rose above 107, while the euro fell below US$1.02.

Oil prices fall

Oil prices fell to a 12-week low earlier on Wednesday on fears of a looming recession. Investors were worried that energy demand would be hit in wake of likely recession.

September delivery Brent futures declined 2%, to settle at US$100.69 a barrel.

WTI crude declined 1%, to close at US$98.53.

Gold prices inch lower

Gold prices remained under pressure due to a stronger US dollar, with the yellow metal extending its sell-off to an over nine-month low.

Spot gold fell 1.4% to US$1,738.99 per ounce by 2:52 PM ET (1852 GMT).

Meanwhile, iron ore prices hit their lowest level in 2022 on Wednesday in Singapore amid latest rise in COVID-19 cases in China. The surge in these cases triggered fears of a further lockdown in the country.

But on China's Dalian Commodity Exchange, iron ore’s most-traded September contract finished 1.8% higher at 747 yuan (US$111.42) a tonne.

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