Hello, I’m James Preston and welcome to the morning outlook exclusive to kalkine tv – where
we provide you with all the information you’ll need for a successful day of trading.
Australian shares are likely to open lower on Thursday after a muted overnight
trading session on Wall Street. The domestic market is also set to be negatively impacted
by the recent comments from the US Federal Reserve Chairman Jerome Powell regarding rate hikes,
while a decline in underlying prices may exert pressure on domestic commodity shares.
The latest ASX futures hint that the benchmark ASX 200
is set to open 3 points lower. On Wednesday, the ASX 200 declined 0.95% to 6,700.2 points.
Global indices fell and bond yields cooled down on Wednesday
following comments by Powell who warned about the risk that the Fed’s rate hikes could have
on slowing the economy. But he maintained that the bigger risk was continuing consumer price rises.
On Wall Street, the Dow Jones rose 0.27%, the S&P 500 slipped 0.071%, and the NASDAQ dipped 0.03%.
In Europe, the Stoxx 50 rose 1%, the FTSE fell 0.1%, the DAX slipped 1.7%,
and the CAC ended 0.9% lower. MSCI's gauge of stocks across the globe fell 0.52%.
It was a sea of red for Asian markets. Japan’s Nikkei lost 0.91%, China’s Shanghai Composite
dropped by 1.4% and Hong Kong’s Hang Seng saw the biggest loss, falling by 1.88%.
TIME now for a quick break on the Morning Outlook before we take a look at the Aussie dollar,
oil, gold and the world of crypto! @@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@
Welcome back to the morning outlook on Kalkine TV where
we give you all the information you’ll need for a successful day of trading.
The Aussie dollar is has dipped over the past 5 days from just below 70 US cents to its
current price of 68.8 cents. Over the past 24 hours it’s seen a marginal increase of 0.01%.
Moving on and following Powell’s rate hike comments,
US yields slipped for the second day in a row on Wednesday.
The yield on 10-year Treasury notes declined 10.5 basis points
to 3.102%, while the two-year's yield slipped 6.5 basis points to 3.059%.
On the other hand, the US dollar rose 0.373%,
while the euro fell 0.39% to just above 1 us dollar and 4 cents.
Oil prices inched lower on Wednesday and fell nearly 2%.
The prices declined on concerns that a recession could bring down oil demand.
Additionally, there was a rise in the US gasoline and distillate inventories.
Brent futures for August delivery dipped 1.5% to close at AU$116.26 a barrel.
The September contract fell AU$1.35 to AU$112.45.
Gold prices also dipped on Wedesday, as traders were unsure about the yellow metal’s direction
amid both interest rate hikes and recession concerns.
Spot gold fell 0.2% to AU$1,815.79 an ounce.
Meanwhile, iron ore prices also fell on Wednesday
with Singapore iron ore futures retreating following a 2-day rally.
Similarly, the Dalian market traded on a weak note following comments from Chinese President
Xi Jinping, who encouraged a continuation of the countries strict covid 19 management strategy.
And lastly, the crypto market has slumped once more. In the past 24 hours the global
crypto market cap has decreased by 1.01% to be valued at approximately $US900B down from
Wednesday mornings market cap of 910B us dollars. Flagship cryptocurrency Bitcoin has fallen by 0.9%
in the past 24 hours, but over the past week has largely maintained its value with
a marginal gain of 0.15%. It currently sits just above the crucial 20k floor.
Well that’s all for the morning outlook. Have a great day trading and make sure to keep it locked
on Kalkine TV for the latest market insights and business news. I’m James Preston reporting for
Kalkine.