ASX 200 to rise; Wall Street closes mixed after jobs data

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ASX 200 to rise; Wall Street closes mixed after jobs data

 ASX 200 to rise; Wall Street closes mixed after jobs data
Image source: © Danp68 | Megapixl.com

Highlights

  • The Australian shares are likely to inch marginally higher on Monday.

  • The latest ASX futures were indicating that the benchmark ASX 200 index would open 20 points or 0.3% higher.

  • On Wall Street, the Dow Jones fell 0.15%, the S&P 500 declined 0.1%, and the NASDAQ ended 0.1% higher.

The Australian shares are likely to inch marginally higher on Monday despite Wall Street closing on a mixed note last Friday. However, the overall risk appetite would largely remain in check on account off rising consumer prices, likelihood of a renewed global interest rate hike cycle and concerns about economic slowdown.

The week is expected to be volatile on account of key data releases, along with beginning of US second-quarter reporting season.

The latest ASX futures were indicating that the benchmark ASX 200 index would open 20 points or 0.3% higher. On Friday, the ASX 200 ended 0.45% higher at 6,678 points.

On Wall Street, the Dow Jones fell 0.15%, the S&P 500 declined 0.1%, and the NASDAQ ended 0.1% higher.

The US government data released on Friday revealed that more jobs were added in June than were expected, implying recession was still far away amid persistent growth in jobs. The nonfarm payrolls surged by 372,000 jobs last month, above market expectations. The rate of unemployment stood steady at 3.6%.

In Europe, the Stoxx 50 rose 0.5%, the FTSE surged 0.1%, the CAC gained 0.4%, and the DAX ended 1.3% higher.

Bond yields

Treasury yields surged on Friday, following a stronger-than-expected US jobs report, implying that the US Federal Reserve may further lift interest rate hikes to tame rising inflation.

The benchmark 10-year yields last rose to 3.0822%, from 2.989% before the data. Two-year yields climbed to 3.0985%, from nearly 3.001%.

On Friday, the US dollar index traded flat. It had earlier hit its highest level since 2002.

Oil prices rise

While oil prices rose on Friday, they were still down on the week due energy demand concerns amid potential economic slowdown.

  • Brent crude was up 2.3% to end at US$107.02 a barrel.
  • WTI rose 2% to end at US$104.79 per barrel.

Gold prices inch higher

Despite gold reporting its fourth successive weekly fall, it ended higher on Friday as US dollar inched higher following decent US jobs data.

  • Spot gold was up 0.1% at US$1,741.94 per ounce by 2:49 PM ET (1849 GMT).

Meanwhile, on China's Dalian Commodity Exchange, the most-traded September contract for the iron ore finished 0.7% higher at 755.50 yuan a tonne. It fell from the day's high of 782 yuan.

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