Victoria
ASX poised to fall on global bond sell-off
The Australian sharemarket is facing a downward open as rising global bond yields and climbing oil prices fuel renewed inflation fears.
The Australian sharemarket is poised to fall as a deep sell-off in global bond markets and rising oil prices fuel fresh fears about inflation. Local investors are bracing for a negative start to the trading day as international economic pressures continue to intensify.
According to reporting by ABC News, the downbeat outlook for the domestic market follows significant movements overnight in global debt markets. A steep sell-off in government bonds has seen yields in the United States climb to multi-decade highs, reflecting growing expectations that central banks will maintain restrictive monetary policy settings.
At the same time, a sharp jump in global oil prices has heightened worries about persistent inflation. The combination of high borrowing costs and rising energy prices is weighing heavily on equity markets globally, with the negative sentiment expected to flow directly through to the Australian exchange when trading commences.
It remains to be seen how severely individual sectors on the local exchange will be impacted, or whether certain stock categories can find support amidst the broader market retreat. Analysts are also waiting to see how domestic bond yields respond to the substantial shifts seen in the United States treasury market overnight.
The opening hour of trade will provide the first clear indication of how local investors intend to price in these global macroeconomic shifts.
Investors will now watch how the Australian sharemarket performs during the opening session as it responds to these deepening global bond and oil market pressures.
This report draws on original reporting by Wire report.
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