Australian stocks are expected to start the day slightly on the upside, despite Wall Street losing ground overnight.
ASX futures rose 22 points, or 0.3%, to 6,525 at 6:52 a.m. AEST.
At the same time, the Australian dollar fell to 67.36 US cents.
Yields on global bonds and U.S. bonds fell on Monday as investors prepared for new inflation and corporate earnings data that could influence the Federal Reserve’s path to interest rate hikes.
The pan-European STOXX 600 index lost 0.5% and the MSCI worldwide stock indicator fell 1.2%.
Underlining the global nature of the inflation challenge, central banks in Canada and New Zealand are expected to tighten policy even further this week.
Wall Street, which got off to a good start in July after a brutal first half of the year, fell even further as traders fear another round of strong sales if the company’s results don’t live up to expectations of this month.
The market mood will be tested with earnings from JPMorgan and Morgan Stanley on Thursday, with Citigroup and Wells Fargo the next day.
“People are not only worried about profits being weak due to an economic slowdown, but also about the rise of the US dollar, which creates a headwind for multinationals’ profits, ”said Robert Pavlik, senior portfolio manager of Dakota Wealth Management. , dit.
The Dow Jones Industrial Average fell 164 points, or 0.5%, to 31,174, the S&P 500 lost 45 points, or 1.2%, to 3,854, and the Nasdaq Composite fell 263 points, or 2 , 3%, to 11,373.
Later in the week, a series of U.S. economic data, including consumer prices, retail sales and factory output, should give an insight into how far inflation has peaked and economy has cooled as the Federal Reserve approaches next week’s policy. meeting, which is expected to culminate in the second consecutive rise in 75 basis points of interest rates.
Chris Zaccarelli, investment director of the Independent Advisor Alliance in Charlotte, North Carolina, said his position remains “prudently optimistic,” but investors’ concern about a recession should not be ignored.
“We believe that the headwinds for the economy and the market are substantial, as inflation remains too high … However, we recognize that the prices of many bad news have already been set, with the Nasdaq at the low and the S&P 500 continuing to fall all-time highs, “Zaccarelli said.
In the oil markets, Brent crude fell, trading at $ 106.41 a barrel, at 07:08 EAST.
ABC / Reuters