Australian shares are expected to slide this morning following more losses on Wall Street overnight – the US is awaiting the Fed’s rates decision as we speak.
ASX futures fell 52 points, or 0.6%, to 7,808 early this morning.
Spectre of tariffs
Of course, the constant spectre of the Trump tariffs is also weighing on the markets. The Dow Jones slipped 260 points, or 0.6%, the S&P shed 1.1% and the Nasdaq fell further, losing 1.7%.
Mega-cap stocks weighed on the market, with Alphabet falling 2.2% after announcing its largest-ever acquisition – a US$32 billion deal to buy cybersecurity firm Wiz.
Nvidia dipped 3.3% despite unveiling new AI chips at its annual GTC conference and revealing partnerships to develop 6G networks and self-driving cars.
And Musk’s Tesla continued its freefall – with another 5.3% wiped off its value after RBC trimmed its price target, pointing to a steeply declining market share in China and Europe.
Europeans have been abandoning the brand in droves, and the secondhand market for the cars tells the tale – there are reportedly plenty of used Tesla bargains to be snapped up.
Related brands Amazon.com and Meta also repelled investors, losing 1.5% and 3.7%, respectively.
Europe goes its own way
Over in Europe, things were brighter. Sharemarkets ticked up, supported by Germany’s parliamentary approval of a spending surge.
The German DAX rose 1%, setting an intraday record high, while the FTSEurofirst 300 index climbed 0.6%.
European banks led the gains, advancing 2.2% to reach their highest level since February 2011. In London, the FTSE 100 added 0.3%.
US industrial production exceeded expectations, rising 0.7% in February (survey: +0.2%).
Housing starts increased 11.2% to a 1.5 million annualised rate, while building permits declined 1.2% to 1.456 million (survey: 1.453 million).
US government bond yields fell, with the 10-year Treasury yield down two basis points to 4.29%, and the two-year yield dipping one basis point to 4.04% following a strong US$13 billion 20-year bond auction.
Currencies and commodities
The US dollar strengthened against major currencies. The Euro fell from US$1.0953 to US$1.0894 before recovering slightly to US$1.0945 at the US close.
The Australian dollar declined from 63.90 US cents to 63.44 US cents, before stabilising at 63.60 US cents.
Global oil prices fell about 1% as discussions between the US and Russia raised prospects of easing sanctions on Russian fuel exports.
Brent crude dropped 51 US cents, or 0.7%, to US$70.56 per barrel, while US Nymex crude declined 68 US cents, or 1%, to US$66.90 per barrel.
Gold futures surged to a record high of US$3,040.80 per ounce, up 1.2%, amid Middle East tensions and uncertainty over trade policies.
Iron ore futures edged up 10 US cents to US$102.42 per tonne as investors balanced concerns over China’s property market with sustained steel demand.
Base metal prices were mixed, with copper up 1.2% and aluminium down 1.4%.
In Australia, the Westpac leading index is set for release.
Globally, markets will focus on interest rate decisions from the Bank of Japan and the US Federal Reserve, while General Mills is scheduled to release earnings.