Fed comments & oil rally trigger afternoon sell off

05Apr

Fed comments & oil rally trigger afternoon sell off

 

US markets opened in positive territory before Fed rates commentary and a pop in oil prices spooked traders and triggered an afternoon sell off.

The Dow Jones finished the day down 1.4 per cent, the S&P500 closed down 1.2 per cent after being up close to 1 per cent in early trading and the Nasdaq fell 1.4 per cent for the day.

Turning to US sectors, all sectors finished in the red with Tech and Healthcare the worst performers down 1.7 per cent & 1.4 per cent respectively. The best performing sector was Energy which finished virtually flat down 0.06 per cent for the day.

The sell off was triggered by a combination of rates commentary and a rally in oil. Comments from the Minneapolis Fed President Kashkari that he wondered if the central bank should cut rates at all if inflation remained sticky pushed treasury yields higher.

Adding to market concerns around inflation crude oil prices popped higher in afternoon trading with WTI closing 1.3 per cent higher at $86.59 per barrel and Brent closing 1.45 per cent higher at $90.65 per barrel. Concerns around geopolitical risks in the Middle East again spooked traders after news reports that Israeli embassies have been put on high alert as Iran continues to make noises about retaliation for the Damascus Consulate bombing.

All eyes will now turn to the key March nonfarm payrolls report which is due out tomorrow. Consensus expectations are looking for a 200,000 rise in payrolls. If the number surprises to the upside this may place additional pressure on the Fed and rates.

In other commodity news, copper prices rallied to the highest level in 14 months due to concerns around supply risks. Whilst there are demand concerns related to China's property sector and other key industries, India's massive infrastructure spending and the global AI frenzy are seen as new drivers for demand.
 
Futures

The SPI futures are pointing to a 0.8 per cent fall.

Currency

One Australian dollar at 7.35am was buying 65.85 US cents.

Commodities

Gold lost 0.20 per cent. Silver fell 0.18 per cent. Copper added 0.49 per cent. Oil gained 1.51 per cent.

Figures around the globe

European markets closed mixed. London’s FTSE gained 0.48 per cent, Frankfurt added 0.19 per cent, and Paris closed 0.02 per cent lower.

Turning to Asian markets, Tokyo’s Nikkei gained 0.81 per cent, Hong Kong’s Hang Seng and China’s Shanghai Composite were closed.

Yesterday, the Australian share market closed 0.45 per cent higher at 7,817.34.

Ex-dividends
Gowing Bros (ASX:GOW) is paying 3 cents fully franked

Dividends payable
Ambertech Ltd (ASX:AMO)
AUB Group Ltd (ASX:AUB)
Auckland International Airport Ltd (ASX:AIA)
BlackWall Ltd (ASX:BWF)
Corporate Travel Management Ltd (ASX:CTD)
CTI Logistics Ltd (ASX:CLX)
Cue Energy Resources Ltd (ASX:CUE)
Evolution Mining Ltd (ASX:EVN)
Inghams Group Ltd (ASX:ING)
Joyce Corp Ltd (ASX:JYC)
MAAS Group Holdings Ltd (ASX:MGH)
Monash IVF Group Ltd (ASX:MVF)
Pacific Smiles Group Ltd (ASX:PSQ)
Perseus Mining Ltd (ASX:PRU)
Propel Funeral Partners Ltd (ASX:PFP)
Ramsay Health Care Ltd (ASX:RHC)
Reliance Worldwide Corp Ltd (ASX:RWC)
Service Stream Ltd (ASX:SSM)
Shriro Holdings Ltd (ASX:SHM)
Spark New Zealand Ltd (ASX:SPK)
Tourism Holdings Ltd (ASX:THL)
US Masters Residential Property Fund (ASX:URF)
Ventia Services Group Ltd (ASX:VNT)
WiseTech Global Ltd (ASX:WTC)

Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap.

Disclaimer

The views, opinions or recommendations of the commentators in this presentation are solely those of the author and do not in any way reflect the views, opinions, recommendations, of Sequoia Financial Group Limited ABN 90 091 744 884 and its related bodies corporate (“SEQ”). SEQ makes no representation or warranty with respect to the accuracy, completeness or currency of the content. Any prices published are accurate subject to the time of filming and shouldn’t be relied upon to make a financial decision. Commentators may hold positions in stocks mentioned and companies may pay FNN to produce the content at times. The content is for educational purposes only and does not constitute financial advice. Independent advice should be obtained from an Australian Financial Services Licensee before making investment decisions. To the extent permitted by law, SEQ excludes all liability for any loss or damage arising in any way including by way of negligence.
Copyright 2024 – Finance News Network


Source: Finance News Network

Share this post

Related Posts

11Jan

Tech jumps as dip buyers arrest rout on late recovery: ASX to fall

11 Jan 2022 - Dip buyers arrested the tumble in tech shares for a mixed close on Wall St. Market participants eye upcoming economic print for an insight in the state of inflation. European markets falls as rate hike looms while Asian markets rise despite China’s covid-zero policy.

Read More
17May

Biden and McCarthy set to continue talks regarding the US debt ceiling

17 May 2023 - Stocks dipped Tuesday as Wall Street also turned its attention to a meeting between congressional leaders and President Joe Biden on the US debt ceiling.

Read More
21Mar

Retail turnover falls 1.1% MoM in Feb: Aus shares 0.2% lower at noon

19 Mar 2021 - The Australian share market opened lower and has continued on this trajectory into the mid-session. Energy stocks are dragging on the market despite signs of recovery in the iron ore price. This follows a rocky session on Wall Street overnight which saw the tech heavy Nasdaq lose 3.02 per cent. Morgan Stanley says shares in Westpac (ASX:WBC) are overweight, setting a target price of $25.30.

Read More
24Mar

Airtasker (ASX:ART) shares surge on market debut: ASX tracking 0.4% higher at noon

23 Mar 2021 - The Australian share market is higher this lunchtime with the utilities sector boosting the market. The S&P/ASX 200 index is 30 points up or 0.4 per cent higher at 6,782. On the futures market the SPI is 26 points higher. Rip Curl boosts Kathmandu's (ASX:SMD) half year results.

Read More
20Jan

Yellen gives approval for more US stimulus: ASX poised to open higher

20 Jan 2021 - Following a boost on US markets overnight, the ASX looks set to open higher this morning. Janet Yellen, President-elect Joe Biden’s choice for Treasury secretary, is in favour of more stimulus. Back home, some of the larger banks will stop giving automatic mortgage holidays to home owners struggling due to the pandemic. Yancoal (ASX:YAN) reports that their run of mine coal production was down 3% from the third quarter in 2020.

Read More
14Jan

Wisr (ASX:WZR) responds to ASX: Aus shares 0.7% higher at noon

14 Jan 2020 - Neo-lender Wisr (ASX:WZR) has responded to the ASX saying it was not in breach of continuous disclosure rules. Electro Optic Systems (ASX:EOS) appoints John Berry, the former US ambassador to Australia, to the board of its US subsidiary.

Read More
10Jun

Market surpasses 6000-point level: ASX closed 2.4% higher

09 Jun 2020 - The ASX rose at the open and managed to close 2.4% higher. The banks gave the market a boost today. Virgin Money UK (ASX:VUK) and Credit Corp Group (ASX:CCP) shares did well today. Shares in Gold Road Resources (ASX:GOR) fell today. The aussie dollar stalled on its rally and the iron ore price is up almost 5%. Comet Ridge (ASX:COI) announced that the Mahalo Gas Project (MGP) has been granted Queensland State Government environmental approval...

Read More
07Feb

Melco abandons plans to increase stake in Crown Resorts (ASX:CWN): ASX poised to open higher

07 Feb 2020 - Australian shares are poised to open higher after positive leads from New York. All three US benchmarks closed higher, resetting record highs. Shares also rose across Europe in response to China's decision to cut tariffs on some imported US goods. Crown Resorts (ASX:CWN) have entered into a deed to terminate the sale of the second tranche of Crown shares to Melco Resorts Group.

Read More
24Sep

Treasury Wine Estates shares drop on China trade war fears: ASX closed 0.01% lower

24 Sep 2019 - The ASX failed to gain momentum after an early rise this morning and closed 0.01% lower. Treasury Wine Estates (ASX:TWE) shares dropped today after they released their Investor day presentation showing Chinese wine accounts for 60% of sales volume in China and fears this could be harmed by the trade war between the US and China. Noxopharm (ASX:NOX) released an announcement today saying Chief Medical Officer Dr Greg Van Wyk is departing the business.

Read More
23Feb

Nvidia inspired rally pushes Nasdaq near record high

23 Feb 2024 - The S&P 500 surged to new highs on Thursday after chip giant Nvidia reported much stronger-than-expected quarterly results, lifting the broader market and tech sector.

Read More