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Markets live: ASX to recover from three-month low, surging oil prices drag Wall Street lower
The Australian share market is likely to rise slightly and bounce back from its three-month low.
Wall Street extended its sell-off as oil prices spiked on further signs of disruption in Saudi Arabian crude supplies.
See how the trading day unfolds on our blog.
Disclaimer: This blog is not intended as investment advice.
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Market snapshot
- ASX futures: +0.4% to 8,691 points
- ASX 200 (Tuesday close): -0.9% to 8,673 points
- Australian dollar: -0.1% to 71.3 US cents
- Wall Street: Dow Jones (-0.6%), S&P 500 (-0.5%), Nasdaq Composite (-0.8%)
- Europe: Stoxx 600 (-0.3%), DAX (-0.2%), FTSE (-0.4%)
- Spot gold: -0.1% to $US4,293/ounce
- Oil (Brent futures): +2.6% to $US108.39/barrel
- Oil (WTI futures): +4% to $US105.45/barrel
- Iron ore: -0.1% to $US96.55/tonne
- Bitcoin: -4.1% to $US75,866
- 10-year bond yields: US 5.01%, Australia 5.37%
Prices current at around 7:20am AEST
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Next few decades will be 'very difficult', economist Charles Goodhart warns
"The next 30 to 40 years are going to be very difficult," the influential economist Charles Goodhart warned recently.
"Those who lived primarily in the years between 1950 and 2020 — those 70 years — those were probably the best years in terms of growth, living standards, [and] conditions that not only the UK but effectively the Western world has ever seen.
"We didn't know how lucky we were, and many of the conditions that gave us that magnificent period are over," he said.
Goodhart is an emeritus professor at the London School of Economics and a former senior official at the Bank of England.
He is famous for his adage, called Goodhart's Law, that an observed statistical relationship will tend to collapse once you try to target it for policy purposes.
For more on this bleak economic future, here's the latest column by Gareth Hutchens:
ASX to recover from three-month low, oil price surges
Welcome to the ABC's finance blog! I'll be guiding you through the latest market action for the next few hours.
The Australian share market hasn't been doing so well lately, having fallen almost every day in the past fortnight.
As a result of these accumulated losses, the ASX 200 is now at a three-month low.
But it appears investors are keen to 'buy the dip' as the futures market indicates the ASX is on track to open slightly higher, by around 0.3%,this morning.
The Australian dollar is relatively steady at71.3 US cents.
That's despite another rough session on Wall Street, which saw the Dow Jones index fall 0.6%, while the S&P 500 and Nasdaq Composite slipped by 0.5% and 0.8% respectively.
Oil price spikes again
US markets were weighed down by another sharp rise in oil prices after shipping industry sources said crude loadings at Saudi Arabia's Red Sea export hub of Yanbu had been suspended.
Riyadh had cancelled some cargo deliveries to European customers, deepening concerns that disruptions to a critical oil-export route could persist for weeks.
That led to Brent crude futures jumping 2.6% to $US108.39 per barrel and West Texas Intermediate crude futures surging 4% to $US105.45/barrel.
The port of Yanbu has taken on outsized importance for global supply since the US-Israeli war on Iran caused the closure of the Strait of Hormuz, a critical waterway that was the conduit for one-fifth of the world's oil and liquefied natural gas supplies.
The war has forced Saudi Arabia to reroute crude westward via the roughly 1,200-kilometer East-West pipeline that carries oil from the east to Yanbu on the west coast, allowing exports to leave through the Red Sea without tankers passing through the strait.
Attacks on the East-West Pipeline by Yemen's Iran-aligned Houthis on Friday, however, forced the kingdom, the world's largest crude exporter, to shut the key export route.
- with Reuters
