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Highlights
Australian share market is likely to rebound on Thursday.
According to the latest SPI futures, the ASX 200 is expected to open 31 points or 0.5% higher.
On Wall Street, the Dow Jones was down 0.15%, the S&P 500 fell 0.1%, and the NASDAQ edged 0.15% lower.
The Australian share market is likely to rebound on Thursday despite US stocks ending lower, while a fall in commodity prices is expected to cap gains for local miners and energy stocks.
According to the latest SPI futures, the ASX 200 is expected to open 31 points or 0.5% higher. On Wednesday, the benchmark index dropped 0.2% to 6,508.5 points.
Major US stock indices ended down slightly Wednesday, losing early gains tied to remarks by Federal Reserve Chair Jerome Powell that the US central bank is "strongly committed" to bringing down inflation, while sharply lower oil prices weighed on energy shares. On Wall Street, the Dow Jones was down 0.15%, the S&P 500 fell 0.1%, and the NASDAQ edged 0.15% lower.
In Europe, the Stoxx 50 fell 0.8%, the FTSE declined 0.9%, the CAC plunged 0.8% and the DAX ended 1.1% lower.
Minutes from the Bank of Japan's April policy meeting released Wednesday showed the central bank's concerns over the impact the plummeting currency could have on the country's business environment.
Bond yields
- 10-year yield: US 3.15%, Australia 3.98%, Germany 1.63% (US prices as of 4.32 PM in New York)
Oil prices fall
Oil prices tumbled around 3% on Wednesday as investors worried that rate hikes by the Federal Reserve could push the US economy into recession, dampening demand for fuel.
- WTI crude fell US$3.33 to settle at US$106.19 a barrel.
- Brent crude dropped US$2.91 to settle at US$111.74.
Gold prices rise
Gold prices rose on Wednesday as a retreat in US Treasury yields, and the dollar bolstered bullion's appeal amid growing recession concerns.
- Spot gold added 0.3% to US$1,838.03 an ounce.
Iron ore prices inch lower
Dalian iron ore futures tumbled on Wednesday to their lowest in 16 weeks, while a sell-off resumed in Singapore, as worries grew about an oversupply of steel in China, the world's biggest producer of the manufacturing and construction material.
Benchmark September iron ore on China's Dalian Commodity Exchange ended daytime trade 6% lower at 709.50 yuan (US$105.57) a tonne, extending losses to a ninth straight session.
Mining giants BHP Group (ASX:BHP), Fortescue Metals Group (ASX:FMG), and Rio Tinto (ASX:RIO) could trade on a muted note on Thursday after the iron ore price continued its decline.
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