ASX set for an uneasy start after a mixed Wall Street session

May 11, 2022 - 2 weeks ago
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The Australian share market is likely to remain cautious as U.S. stocks swung between gains and losses on Tuesday as uncertainty over U.S. inflation, interest rates, and the economy continued to weigh on global markets.

The ASX futures tumbled -9 points or -0.1% to 7,013, while our local currency, the Australian Dollar, is currently buying US$0.6934 (as of writing).

U.S. stocks closed mixed in another session marked by several twists and turns, with investors attempting to make sense of comments from many U.S. Federal Reserve speakers ahead of key U.S. inflation data on Wednesday.

At the finishing bell, on the New York Stock Exchange (NYSE), the blue-chip Dow Jones Industrial Average dropped for a fourth consecutive session, hitting a 52-week low, to -84.96 points, or -0.3%, at 32,160.74.

The broad-based Standard & Poor’s 500 Index added +9.81 points, +0.2%, at 4,001.05, while, the rich-tech Nasdaq Composite Index rose +114.42 points, or +1%, to 11,737.67.

The US dollar index (US DXY), which tracks the greenback against a basket of its peers, rose +0.2% to 103.95.

Precious metals fell, with spot gold losing -1.35% to $1,833.20 an ounce, and silver fell by -2.48% to $21.26.

Global benchmark Brent crude was trading at $102.59 a barrel, down -3.28%, while U.S. benchmark West Texas Intermediate (WTI) crude was at $99.90 — a -3% loss.

Meanwhile, cryptocurrencies, Bitcoin, the world’s largest cryptocurrency by market value, rose by +1% and is trading at US$31,160.00 (as of writing).

Based on the daily technical assessment of the S&P/ASX 200 (XJO), a mixed opening is foreseen, with the intraday support located at 7,035 minor, with 6,970 viewed beneath. Reassess from there.

Assessing the topside, the resistance is seen at 7,080 minor, with 7,145 located above. Reassess from there.

Daily outlook on the benchmark S&P/ASX 200

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