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ASX Today: Australian Shares Set to Open Lower After Wall Street Losses
Australian shares are expected to open lower on Wednesday after Wall Street declined overnight amid rising US bond yields and inflation concerns. Futures suggest the ASX 200 could fall around 32 points at the open despite Tuesday’s strong rally. Investors will closely watch weaker oil and gold prices, which may pressure energy and mining stocks throughout the session. Catapult Sports is releasing earnings results, while TechnologyOne remains in focus following a positive broker recommendation. Analysts expect market volatility to continue as traders respond to global economic uncertainty, commodity price movements, geopolitical developments, and ongoing pressure from higher interest rates.
Australian shares may open down after Wall Street sinks as US bond yields rise. It comes as investors look to weaker oil and gold prices, company earnings and key ASX stocks that are expected to stay active in trade.
Key Highlights
- ASX 200 set to fall 32 points
- US indexes lower overnight
- Oil prices, gold too slip in the global market
- Focus remains on TechnologyOne after broker support
Weak ASX Start, Wall Street Losses
The Australian share market is expected to open lower in morning trade after another round of selling on US bonds led to more losses on Wall Street overnight. As for the S&P/ASX 200 Index, Tuesday’s session ended on a high note, rising 1.15% to finish with 8,604.7 points. But SPI futures now suggest the benchmark index will open about 32 points softer on Wednesday morning.
The Dow Jones fell 0.65%, the S&P 500 dropped 0.65% and the Nasdaq declined overnight by 0.85% in the US after another night of rising Treasury yields amid inflation concerns and interest rates, which is widely indexed in accounting for bears to indexes heading downwards in various sectors over time.
Market-Up, Commodities down and Bond Yields Up
Overall markets are under pressure around the world as bond yields move higher making it more expensive to borrow and equities less in demand. Investors are increasingly fearful that inflation might stay higher for more prolonged periods and result in firmer interest rates being held by central banks.
Oil prices also retreated after US President Donald Trump said he had postponed a military strike on Iran, eliminating tensions in the Middle East which could have affected supply. The price for Brent crude settled at around US$111 a barrel and gold prices dived overnight as rising yields weakened demand for safe haven assets.
Today’s ASX Focus on Energy, Gold and Technology Stocks
Weaker oil prices overnight might keep some ASX energy shares, like Beach Energy Ltd (ASX: BPT) and Santos Ltd(ASX: STO), under pressure today.
There may also be selling pressure on gold miners such as Newmont Corp and Northern Star Resources Ltd, with gold dropping 1.5%. Technology stocks are another sector which remain on watch after TechnologyOne Ltd had a buy recommendation from broker Bell Potter.
FAQs
- Why did ASX decline on Tuesday?
Rising US bond yields and uncertainty in Wall Street are putting pressure on investor sentiment.
- Which sectors could feel issues over the course of the day?
Commodity prices could hit energy and gold mining stocks.
- Why are oil prices falling?
Oil prices retreated after the uptick in US–Iran tensions saw less of a rise.
- What stocks are in highlight today?
Key stocks for the day: Catapult Sports, TechnologyOne, Santos and Newmont
- What is bothering global investors right now?
Inflation, interest rates and surging bond yields top the list of growing anxiety across markets.
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