Australian share market set to open lower, tracking mixed global cues and rising oil prices.
The Australian share market is projected to open lower in the upcoming trading session, based on futures trading data and mixed results from global markets. This outlook is influenced by a combination of rising oil prices and varied performances on Wall Street.
Market Indicator Forecasts
- The SPI futures indicate that the ASX 200 is expected to open 0.1% lower.
- This follows a mixed session on Wall Street where the Dow Jones rose 0.1%, the Nasdaq fell 0.7%, and the S&P 500 dropped 0.15%.
Global Market Drivers
US Economic Data
Markets reacted to the release of the US consumer price index (CPI), which rose 3.8% in the 12 months to April, marking the highest annual increase since May 2023.
Energy Sector
Oil prices increased, reaching approximately $US110 per barrel. This rise is attributed to ongoing regional conflict, including further setbacks in efforts to end hostilities between the US and Iran. Market attention remains on potential disruptions to shipping through the Strait of Hormuz and the impact on global fuel costs and inflation.
Contrasting US Performance
While the broader market experienced declines, some reports noted that the S&P 500 closed at a record all-time high in a prior session, driven by a rally in chipmakers. This record occurred despite most stocks in the index declining at that time.
Domestic Economic Context
Australian investors are awaiting announcements regarding the upcoming federal budget, including potential changes to tax policy.