ASX 200 to rebound; Wall Street tumbles; iron ore rises

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ASX 200 to rebound; Wall Street tumbles; iron ore rises

 ASX 200 to rebound; Wall Street tumbles; iron ore rises

Highlights

  • The Australian share market is expected to open higher on Thursday.
  • According to the latest SPI futures, the ASX 200 is likely to open the day 20 points or 0.3% higher.
  • On Wall Street, the Dow Jones was down 0.96%, the S&P 500 fell 0.97%, and the NASDAQ ended 1.15% lower.

The Australian share market is expected to open higher on Thursday despite Wall Street recording a decline in the overnight trade. The robust commodity prices are expected to further aid sentiment.

According to the latest SPI futures, the ASX 200 is likely to open the day 20 points or 0.3% higher. The benchmark closed 1% lower on Wednesday.

On Wall Street, the Dow Jones was down 0.96%, the S&P 500 fell 0.97%, and the NASDAQ ended 1.15% lower. Shares in Apple fell 2.2%, while Amazon declined 1.7% and Berkshire Hathaway slipped 1.4%.

Strong US and European corporate results helped stock markets initially rebound on Wednesday, but rising crude prices kept inflation concerns alive and trading choppy even as bond yields eased after having touched fresh multiyear highs.

Investors await next week's Federal Reserve policy meeting for guidance on the central bank's plan to tackle inflation.

In Europe, Stoxx 50 rose 0.3%, FTSE surged 0.4%, CAC was up 0.6% and DAX ended 0.2% higher.

MSCI's all-country world index fell 0.18%, while the broad STOXX Europe 600 index closed up 0.23%.

Bond yields

The two-year US Treasury yield slid 2 basis points to 1.020%. The yield on 10-year Treasury notes dipped 4.3 basis points to 1.825%.

The dollar index fell 0.21%. The euro rose 0.21% at US$1.1349, while the yen was down 0.33% at US$114.2300.

Oil prices rise

 Oil prices hit their highest since 2014 amid an outage on a pipeline from Iraq to Turkey and global political tensions that stoked fears of more persistent inflation.

  • Brent crude futures settled up 93 cents at US$88.44 a barrel. 
  • WTI crude futures rose US$1.53 to settle at US$86.96 a barrel.

 Gold prices climb

Gold rose more than 1% as a retreat in the dollar and geopolitical tensions surrounding Ukraine burnished safe-haven bullion's appeal. 

  • US gold futures settled up 1.7% at US$1,843.20 an ounce.

 Meanwhile, iron ore's most-active May contract on China's Dalian Commodity Exchange ended daytime trading 4.3% higher at 735 yuan (US$115.79) a tonne, after touching 741.50 yuan earlier in the session, its strongest since 13 January.

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