The local market is expected to open lower this morning after overseas markets were generally weak overnight and as US Treasury yields surged to their highest levels since July.
ASX SPI 200 Futures are trading down 67 points (-0.8%) to 8,308.
The Dow Jones and S&P 500 indexes retreated after a strong rally the previous week, as investors awaited earnings from major companies to gauge whether equities would sustain their recent run to record highs.
- The Dow Jones index fell by 344 points or 0.8%.
- The S&P 500 index slipped 0.2%.
- The Nasdaq index gained 50 points or 0.3%.
A jump in US Treasury yields pressured stocks. The rate-sensitive real estate sector dropped 2.1%.
Most megacap technology stocks slipped, with Tesla (NASDAQ:TSLA) down 0.8% and Meta Platforms losing 0.2%. Chip giant Nvidia, however, hit a record high, up 4.1%.
Consumer and homebuilder stocks were among the biggest losers as fears about higher-for-longer interest rates crept up, with Target (NYSE:TGT) and Builders FirstSource down between 3.8% and 5.2%.
Boeing (NYSE:BA) jumped 3.1% after news that workers could vote on a new deal to end a costly five-week-long strike.
US government bond yields rose on Monday as investors continued to adjust to a more robust than previously thought American economy, though there are no major US economic releases this week that are expected to drive market direction.
European sharemarkets ended Monday's choppy session in the red ahead of a series of marquee corporate earnings.
- The continent-wide FTSEurofirst 300 index fell by 0.6%.
- In London, the UK FTSE 100 index dipped 0.5% with the utilities sector down 0.6%.
- Bourses in top markets Germany, France, Italy and Spain ended down between 0.6% and 1%.
Currencies
Currencies were weaker against the US dollar in European and US trade.
- The Euro fell from US$1.0863 to US$1.0811 and was near US$1.0815 at the US close.
- The Aussie dollar dipped from US67.05 cents to US66.53 cents and was near US66.60 cents at the US close.
- The Japanese yen slid from 149.21 yen per US dollar to JPY150.83 and was near JPY150.80 at the US close
Commodities
Global oil prices rose nearly 2% on Monday, recouping some of last week's more than 7% decline, with no let-up of fighting in the Middle East and expected Israeli retaliation on Iran worrying markets about supply from the region.
- The Brent crude price rose by US$1.23 or 1.7% to US$74.29 a barrel.
- The US Nymex crude price gained US$1.34 or 1.9% to US$70.56 a barrel.
Base metal prices slipped on Monday after a strong US dollar triggered profit-taking on long copper positions.
- Copper futures fell 0.5%
- Aluminium futures lost 1%.
The gold futures price rose US$8.90 or 0.3% to US$2,738.90 an ounce on Monday, as higher US Treasury yields and US dollar offset support from growing uncertainties surrounding the US presidential election and the Middle East war.
Spot gold was trading near US$2,719 an ounce at the US close after hitting a record US$2,740.37 earlier in the session.
Iron ore futures fell US14 cents or 0.1% to US$105.23 a tonne on Monday, as the US dollar pushed higher, with traders digesting news that Chinese banks cut their lending rates.
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