The Australian share market is set for a mixed opening on Friday as the U.S. stocks on Wall Street shook off a midday slump and tried to climb out of the bear market territory and keeping the market on track for its first weekly gain after three weeks of punishing losses.
The Australian share market futures point to a -9 point loss, or -0.2%, to 6,425, while our local currency, the Australian dollar, is currently buying US$0.6902 (as of writing).
Wall Street’s main indexes were mixed in choppy trading on Thursday as investors weighed recession worries against its bargain-hunting inclinations as markets hoped for a rebound from recent losses.
At the finishing bell on the New York Stock Exchange (NYSE), the blue-chip Dow Jones Industrial Average added +194.23 points, or +0.6%, to 30,677.36.
The broad-based Standard & Poor’s 500 Index rose +35.84 points, or +1%, to 3,795.73, while the rich-tech Nasdaq Composite Index gained +179.11 points, or +1.6%, to 11,232.19.
During his second testimony in front of Congress this week, investors focused on U.S. Federal Reserve Chair Jerome Powell downplaying the idea that government pandemic aid was the key factor fueling U.S. inflation and instead blamed a confluence of global issues, including the war in Ukraine.
U.S. Fed Powell acknowledged those risks in two days of testimony to lawmakers, saying that a recession was possible and that a soft landing would be “very challenging” as inflation hits 40-year highs and interest rates surge higher, making it more expensive for consumers to borrow money.
Meanwhile, the US dollar index (US DXY), which tracks the greenback against a basket of its peers, edged higher by +0.1% to 104.15, while in the bond market, the 10-year US Treasury yield declined to fell -2.6% to 3.074% from 3.155% on Wednesday. Yields climb when bond prices decline.
Precious metals were negative as spot gold fell -0.6% to $1,824.15 and silver lost -1.1% to $21.02.
Global oil benchmark Brent crude was trading at $110.40 for a -1% decrease, while U.S. benchmark West Texas Intermediate (WTI) was at $103.85 — a 0.2% decrease.
Iron ore prices jumped by +6.1% to US$116.05 a tonne, while cryptocurrencies Bitcoin, the world’s largest cryptocurrency by market value, ended by +4.8% and is trading at US$21,050.00 (as of writing).
Based on the daily technical assessment of the S&P/ASX 200 (XJO), a mixed opening is foreseen, with the intraday resistance seen at 6,565-75, with 6,615 seen above. Reassess from there.
Assessing the downside, the support is observed at 6,490 minor, with 6,455 located beneath. Reassess from there.
Daily outlook on the benchmark S&P/ASX 200