Asian action markets are trading mostly lower on Monday, following broadly negative signals from global markets on Friday, amid concerns about the outlook for the world economy against a backdrop of monetary policy tightening by central banks around the world. Traders are cautious as they await the US Fed’s monetary policy decision on Wednesday. Asian markets closed mostly lower on Friday.
The Fed is widely expected to raise interest rates another 75 basis points, although some see an outside chance for a 100 basis point rate hike.
The latest World Bank report warning of a global recession is also weighing on sentiment. The World Bank has warned that the world could face a recession next year amid simultaneous monetary policy tightening by central banks.
Australia’s stock market is slightly lower in choppy trading on Monday after being in the green for most of the morning session, recouping some of the previous session’s losses, with the benchmark S&P/ASX 200 index remaining above. above the 6,700 level, despite the largely negative result. signals from global markets on Friday, with gains in mining stocks partially offset by weakness in energy and financial stocks.
The benchmark S&P/ASX 200 gained 6.90 points or 0.10% to 6,732.20, after hitting a low of 6,714.70 and a high of 6,753.90 earlier. The broader All Ordinaries index is down 13.80 points or 0.20% at 6,961.40. Australian shares closed sharply lower on Friday.
Among the major miners, BHP Group and Fortescue Metals are up nearly 1% each, while OZ Minerals and Mineral Resources are up more than 4% each. Rio Tinto adds more than 1%.
Oil inventories are mostly low. Beach Energy and Woodside Energy are down 0.2% each, while Santos and Origin Energy are flat.
Among tech stocks, Xero was down 0.3% and Afterpay owner Block was down nearly 4%, while WiseTech Global was up 0.4% and Appen was up 1.5%. The zip is flat.
Gold Miners are up, Gold Road Resources is up almost 3%, Evolution Mining is up 1.5%, Newcrest Mining is up almost 2%, Resolute Mining is up over 2% and Northern Star Resources is up over by 3%.
Among the big four banks, National Australia Bank lost nearly 1%, while Westpac fell 0.2 to 0.5% each. Commonwealth Bank rose 0.5%.
In the currency market, the Australian dollar is trading at $0.671 on Monday.
The Japanese Stock Exchange is closed for the Old Age Day holiday. Japanese stocks ended significantly lower on Friday.
In the currency market, the US dollar is trading in the lower range of 143 yen on Monday.
Elsewhere in Asia, China, Hong Kong, South Korea, Singapore, Malaysia and Taiwan are lower by 0.1 to 1.0% each. Indonesia bucked the trend and posted an increase of 0.2%. New Zealand is relatively flat.
On Wall Street, stocks fell further in Friday’s session after coming under pressure in Thursday’s session. The major averages all moved lower on the day, ending the session at their lowest closing levels in two months.
Major averages climbed well past their pre-close session lows, but remained in negative territory. The Dow Jones fell 139.40 points or 0.5% to 30,822.42, the Nasdaq fell 103.95 points or 0.9% to 11,448.40 and the S&P 500 slipped 28.02 points or 0.7% at 3,873.33.
Major European markets also traded lower on the day. While Germany’s DAX index plunged 1.7%, France’s CAC 40 index fell 1.3% and Britain’s FTSE 100 index slid 0.6%.
Crude oil futures stabilized on Friday following the resumption of oil exports from Iraq’s oil terminal in Basra, where a spill caused disruption. West Texas Intermediate crude futures for October settled at $85.11 a barrel, up $0.01 from the previous close. WTI crude futures lost almost 2% during the week.
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