Australian equities are poised to open lower as current and former US central bank officials continue to argue in favor of higher interest rates and the growing prospects of at least a slight recession.
In addition, bearers and bulls continue to debate, without agreement, whether last week’s rally ended last year’s correction.
ASX futures fell 58 points or 0.8% to 7178 near 6.45am AEST.
- A Wall St: Dow -0.5% S&P 500 -0.8% Nasdaq -0.7%
- New York: BHP + 1.3% Rio -0.3% Atlassian + 1.1%
- Tesla -2.4% Apple -0.1% Amazon + 1.2% Meta -2.6%
The local currency fell; Bloomberg’s dollar-denominated index rose 0.6%.
At bitstamp.net, bitcoin fell 7.4 percent to $ 29,366 at 6:30 a.m. AEST.
The 10-year U.S. bond yield was 7 basis points higher, at 2.91 percent near 4:30 p.m. in New York.
On Wall Street, stocks fell sharply. Commodities brought down 10 of the 11 S&P 500 industry sectors; energy advance with the price of oil.
In a note, Marko Kolanovic and Bram Kaplan of JPMorgan reiterated that they saw reasons to buy.
“We remain positive on risky assets,” they said, adding, “We believe the markets will recover from YTD losses and lead to an almost unchanged year. This is now a” bullish “view out of consensus, with the majority of the now negative strategists “.
Former New York Fed Bank Director William Dudley said he sees potential for the US central bank to raise its key rate by more than 3%.
Dudley’s comments came as Canada’s central bank raised its key rate by 50 basis points and left the door open, according to Bank of America, at a 75 bp move next month.
Read the balance sheet before the bell here.