ASX 200 Expected to Fall Today as Wall Street Losses Market Sentiment
Synopsis
The ASX 200 is expected to open lower on Thursday after a sharp overnight decline across major US stock markets weakened investor sentiment. SPI futures indicate the benchmark index could fall around 65 points at the open following losses on Wall Street, where the Dow Jones, S&P 500, and Nasdaq all ended lower. Investors are also watching rising oil prices driven by escalating US-Iran tensions, which could support energy stocks including Woodside Energy and Santos. Meanwhile, weaker gold prices may pressure mining shares as inflation concerns and expectations of higher interest rates return to focus.
ASX set to fall Thursday as US market tumbles on inflation concerns
Key Highlights:
- The ASX 200 futures to fall of 65 points
- Fortescue, Rio Tinto and BHP have lost ground on a tough night for Wall Street.
- High oil prices may solidify energy shares.
- Gold prices declines in light of inflation and rate hike pressure
- Megaport (ASX: MP1) shareholders could be keenly interested in the telco's capital raising.
ASX 200 to open lower after Wall Street tumble
SPI futures indicate ASX 200 will open down 65 points, or 0.75% pm Thursday, Wednesday's performance of the benchmark was much better, when it closed 0.7% higher at 8,785.7 points.
Sentiment among investors in kiwi dollar weakened overnight as US stocks had a broad-based sell-off. The Dow Jones dropped 1.2% with the S&P 500 falling 0.75% and the Nasdaq shedding further 0.9%, putting pressure on Australian shares ahead of the open.
Energy stocks up as oil rally could be sustained
Oil prices surged overnight as escalating tensions between US and Iran triggered fear over a major supply disruption around the world West Texas Intermediate crude rose 2.7% to US$96.31 a barrel, while Brent was up 2.1% to US$98 a barrel
Higher oil prices could also help utility companies like Woodside Energy and Santos. If Megaport shares resume trading following a capital raising to fund four more AI infrastructure contracts worth about $458.9 million, investors will also be keeping a close eye on the stock.
Gold Miners to More Pressure as Inflation Comes Back Into Focus
Gold fell overnight as increasing oil prices stoked fears of stubborn inflation forcing rates to stay high for longer. Gold stepped back 1.15% to US$4,467.4 an ounce in afternoon;
The drop could affect gold producers such as Newmont and Northern Star Resources. All day long investors will also watch inflation expectations and central bank policy outlooks as these are additional forces that control market direction.
FAQs
- Which sector could benefit today?
Higher oil prices should help lift energy stocks.
- Why are oil prices rising?
Worries for supply disruption the oil US-Iran tensions
- What are the stocks on investors' radar today?
Megaport, Newmont Corporation, Northern Star Resources Ltd., Santos and Woodside Energy
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