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ASX 200 opens 0.2% lower amid US slump, Aussie sinks

EditorOliver Gray
Published 17/01/2024, 09:56 am
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Investing.com - The ASX 200 fell 0.2% at the open on Wednesday, as US Federal Reserve official Christopher Waller countered expectations of imminent rate cuts.

Shares in New York faced further pressure after a federal judge blocked JetBlue Airways' acquisition of Spirit Airlines, hinting at a potentially more stringent regulatory environment. Boeing Co (NYSE:BA) shares took a 7.9% hit due to rising concerns over its ability to deliver new aircraft on schedule. Morgan Stanley (NYSE:MS) also experienced a 4.2% drop after revealing its quarterly results.

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On the other hand, Advanced Micro Devices Inc (NASDAQ:AMD) saw a surge of over 8% as investors bet on potential benefits to be reaped from advancements in artificial intelligence.

The Australian dollar also fell significantly overnight as the US Dollar Index rallied to 10-month highs as market participants predicted interest rates remaining higher for longer and the potential for escalated conflict in the Middle East.

Gold miner Evolution Mining Ltd (ASX:EVN) is set to issue a production update on Wednesday.

Among commodities, Brent crude fell 0.2% to $US77.99 a barrel. Iron ore rose 1.5% to $US129.35 a tonne 10-year yield: US 4.06% Australia 4.15% Germany 2.26% US prices as of 4.58 pm in New York

Today's agenda includes local building activity and payroll jobs data, as well as overseas data such as China's December industrial production, retail sales, and Q4 GDP. The UK's December CPI will be released at 6 pm, followed by US November business inventories, December retail sales at 12.30 am Thursday, December import price index, and December industrial production at 1.15 am Thursday.

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