ASX set for an uneasy start after another erratic trading day on Wall Street

May 13, 2022 - 2 weeks ago
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The Australian sharemarket is in for an uneasy start on Friday after U.S. stocks on Wall Street had another erratic day of trading which ended with an uneven finish for all major U.S. stock indexes.

The ASX futures are up +10 points or +0.1% to 6,926, while our local currency, the Australian Dollar, is currently buying US$0.6935 (as of writing).

Trading on Wall Street has been volatile, with indexes continuing to display intense whipsaw price action from one day to the next, or even within a single day, as investors try to assess the impact of the highest inflation in decades (40 years) along with concerns that the U.S. Federal Reserve will hamper growth in its effort to bring inflation under control.

At the finishing bell, on the New York Stock Exchange (NYSE), the blue-chip Dow Jones Industrial Average dropped -103.81 points, or -0.3%, to 31,730.30.

The broad-based Standard & Poor’s 500 Index slid -5.10 points, or -0.1%, to 3,930.08, while the rich-tech Nasdaq Composite Index edged up +6.73 points, or less than +0.1%, to 11,370.96. All three indexes are on pace for weekly declines of at least -3.5%.

The US dollar index (US DXY), which tracks the greenback against a basket of its peers, refreshed its highest level in almost 20 years at 104.93, up +0.92%.

Precious metals plummeted, with spot gold losing -1.4% to $1,820.90 an ounce and silver losing -4.1% to $20.68.

Crude oil prices gained slightly, with the global oil benchmark Brent crude was trading at $106.70 for a 1.2% daily gain, while the U.S. benchmark West Texas Intermediate (WTI) was at $105.15 – a +1.1% increase.

Meanwhile, cryptocurrencies Bitcoin, the world’s largest cryptocurrency by market value, fell by -1.8% and is trading at US$29,800.00 (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 6,920 minor, with 6,870 viewed beneath. Reassess from there.

Assessing the topside, the resistance is seen at 6,985 minor, with 7,025 located above. Reassess from there.

Daily outlook on the benchmark S&P/ASX 200

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