ASX set to fall as US stocks have cautious session on fears of rate rise – Michmutters

ASX set to fall as US stocks have cautious session on fears of rate rise

The Australian share market is set to fall and US stocks have ended a mixed session, with chipmaker Nvidia warning of a fall in quarterly revenue.

US stocks retreated from their highs after official employment figures last week showed strong job creation, raising fears of more aggressive interest rate increases by the US Federal Reserve.

Investors are awaiting official US consumer inflation figures on Wednesday.

The Dow Jones Industrial Average rose 0.1 per cent to 32,833, the S&P 500 lost 0.12 per cent to 4,140, ​​and the Nasdaq Composite fell 0.1 per cent to 12,644.

Chipmaker Nvidia lost 6.3 per cent after saying that second-quarter revenue would decline 19 per cent from the previous quarter because of weakness in its gaming business.

Electric car maker Tesla rose after its signed contracts worth $US5 billion ($7.16b) to buy battery materials from nickel-processing companies in Indonesia.

Shares of US car makers jumped after the US Senate passed a $US430 million bill to fight climate change that created a $US4,000 tax credit for used electric vehicles and provides billions in funding for their production.

Insurer American International Group reported a 26 per cent fall in quarterly profit on lower investment income.

It blamed market volatility for a delay in the public float of its life and retirement unit.

The ASX SPI 200 index was down 0.2 per cent to 6,911 at 7:00am AEST, indicating a fall on the Australian share market today.

The Australian dollar jumped 1 per cent overnight to nearly 70 US cents.

At 7:10am AEST, it was buying about 69.78 US cents.

European stocks had a good session.

The FTSE 100 in London rose 0.6 per cent to 7,482, the CAC 40 in Paris rose 0.8 per cent to 6,524, while the DAX in Germany gained 0.8 per cent to 13,688.

Oil prices rose thanks to positive economic data from China and the US.

Brent crude gained 1.8 per cent to $US96.65 a barrel.

Spot gold also rose. It put on 0.8 per cent to $US1788.50 an ounce.



Leave a Reply

Your email address will not be published. Required fields are marked *