Australian shares, which fell into correction on Thursday, are set to soar when trading begins on Friday. Both gold and oil were lower. US Treasury yields retraced part of the previous session’s leap.
Wall Street’s early rally fizzled as investors dumped Telsa, which fell more than 11 per cent, dragging the tech sector with it. All three major benchmarks appeared set to settle down on the day.
Tesla’s drop wiped out more than $150 billion in its market valuation.
ASX futures were up 101 points or 1.5 per cent to 6810 near 8am AEDT; they surged near 200 points earlier. The S&P/ASX 200 dropped 1.8 per cent, or 123.3 points, to close at 6838.3 points and officially entered correction territory on Thursday.
- On Wall St: Dow -0.2% S&P 500 -0.5% Nasdaq -1.4%
- In New York: BHP +2.1% Rio +1.4% Atlassian -0.7%
- Tesla -11.6% Apple -0.3% Amazon +0.6% Netflix +7.5%
The local currency shed 1.2 per cent, tumbling to US70.30¢ near 8.15am AEDT; the Bloomberg dollar spot index leapt 0.7 per cent. Bitcoin was down 2.9 per cent near $US35,700.
“Inevitably, the US69.93¢, 3 December 2021 low, is the next focal point for AUD/USD, though as we have noted on several occasions in NAB FX Strategy reports since mid-December, we expect any dips below US70¢ to prove relatively short-lived,” the bank’s head of FX strategy, Ray Attrill, said in a morning note.
The yield on the US 10-year note fell 6 basis points to 1.81 per cent near 4.15pm in New York, reversing roughly half of its previous day’s advance.
Today’s agenda
Local: Fourth quarter PPI; NZ January consumer confidence
Overseas data: China Caixin manufacturing PMI December; Japan January CPI; Euro-zone January economic and consumer confidence; UK January nationwide house prices; US Fourth quarter employment cost index, December personal income, spending and PCE Core
Market highlights
ASX futures up 101 points or 1.5 per cent to 6810 near 8am AEDT
- AUD -1.2% to 70.30 US cents
- Bitcoin on bitstamp.net -2.9% to $US35,701.27 as of 8.15am AEDT
Overseas
- On Wall St: Dow -0.2% S&P 500 -0.5% Nasdaq -1.4%
- In New York: BHP +2.1% Rio +1.4% Atlassian -0.7%
- Tesla -11.6% Apple -0.3% Amazon +0.6% Netflix +7.5%
- In Europe: Stoxx 50 +0.5% FTSE +1.1% CAC +0.6% DAX +0.4%
Commodities
- Spot gold -1.3% to $US1795.97/oz at 1.28pm New York time
- Brent crude -0.2% to $US89.77 a barrel
- US oil -0.3% to $US87.12 a barrel
- Iron ore +0.5% to $US138.75 a tonne
Governments
- 2-year yield: US 1.19% Australia 0.97%
- 5-year yield: US 1.66% Australia 1.72%
- 10-year yield: US 1.81% Australia 2.02% Germany -0.06%
- US prices as of 4.14pm in New York
