ASX poised to climb after late rally on Wall Street

Australian stocks are expected to edge higher on Friday after Wall Street ended its losing streak despite falling commodity prices.

ASX SPI 200 futures rose 0.3% to 6,820 at 6:43 a.m. AEST.

The Australian dollar fell 0.7% to 67.86 US cents.

After losing ground for most of the day, the Dow jumped nearly half a percent just before near 31,656.

The S&P 500 also rose slightly, ending up 0.3% at 3,966. Both indexes ended a four-day losing streak.

However, the tech-heavy Nasdaq Composite posted a five-day losing streak. The index fell 0.3% to 11,785.

The rally in U.S. indices came after days of losses following Federal Reserve Chairman Jerome Powell’s speech last week in which he signaled that the central bank would remain aggressive in raising rates to combat the ‘inflation.

Positive economic data that showed the number of Americans filing new claims for unemployment benefits fell to a two-month low last week, while layoffs fell in August, suggests aggressive rate hikes will continue to sow the labor market.

On the main index, Health Care gained 1.6% and Utilities rose 1.4%.

The technology sector fell 0.5%, dragged down by chipmakers. Nvidia was the biggest drag on the S&P 500, down 7.6%, while Advanced Micro Devices fell 3% after the U.S. imposed an export ban on some of its best chips. AI to China.

Spot gold was down 1.1% and was selling for US$1,706.50.

In oil markets, Brent crude fell 3.6% to $92.23 a barrel, while West Texas crude fell 3.5% to $86.37 a barrel.

Iron ore fell 8% to US$96.39.

The plunge in oil prices came as new COVID-19 lockdown measures in China stoked inflation concerns and rate hikes dented demand for fuel.

In Europe, the pan-European STOXX 600 index lost 1.8%, Germany’s DAX lost 1.6% and Britain’s FTSE fell 1.8%.

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