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Highlights
The Australian share market is likely to slip on Monday morning.
The ASX 200 would open 16 points or 0.25% lower.
The Dow Jones fell 1.1%, the S&P 500 dipped 1.1%, and the NASDAQ ended 1.3% lower.
The Australian share market is likely to slip following a disappointing end to last week on Wall Street, coupled with a weak sentiment ahead of Reserve Bank of Australia (RBA) governor Phil Lowe’s speech on inflation on Thursday. Additionally, mining stocks are likely to trade lower during the say on softer underlying prices.
As per the latest SPI futures, the ASX 200 would open 16 points or 0.25% lower on Monday morning. On Friday, the benchmark index dipped 0.25% to 6,828.7 points.
On the other hand, Zip Co, AVZ Minerals, Life360, and Pointsbet Holdings are among ASX-listed firms which were announced to be removed out of the ASX 200 index by the S&P Dow Jones at the next rebalance. Meanwhile Fortescue shares are expected to remain in the red on Monday as the mining firm is scheduled to go ex-dividend.
On Wall Street, the Dow Jones fell 1.1%, the S&P 500 dipped 1.1%, and the NASDAQ ended 1.3% lower. Data showed on Friday that US employers hired more workers than expected in August. This initially cheered investors but gains reversed into losses later. US financial markets remain closed on Monday for the Labor Day holiday.
In Europe, the Stoxx 50 rose 2.5%, the FTSE gained 1.9%, the CAC surged 2.2%, and the DAX ended 3.3% higher. MSCI world equity index surged 0.5%.
There were concerns over global growth following fresh lockdowns in China and high energy costs weighing on Europe as a result of the war in Ukraine.
Bond yields
The yields on the US 10-year note closed 6 basis points lower to 3.19%. The US dollar index was flat at 109.58, after hitting a 20-year high in the previous session.
Oil prices rise
Oil prices rose on speculation that the OPEC could announce production cuts this week to boost prices.
- Brent crude futures rose 1% to US$93.3 a barrel.
- WTI crude futures were up by 0.6% at US$87.14 a barrel.
Gold prices inch higher
The US jobs report led to weakening of the US dollar. A softer dollar boosted spot gold which rose 0.9% to US$1,710.00 per ounce.
