Morning wrap: ASX 200 to rise; US bans Russian oil, Wall Street fades

Moomoo News AU wrote a column · Mar 8, 2022 18:26

The Australian share market is expected to open higher on Wednesday, likely helped by higher commodity prices. The domestic market would rise despite investors concerned over the developments around the crisis in Ukraine after US and UK banned Russian oil and other energy imports.

According to the latest SPI futures, the $S&P/ASX 200(.XJO.AU)$ is likely open 29 points or 0.4% higher. The benchmark closed 0.8% lower on Tuesday.

Overnight summary

Source: Market Index

Stocks

U.S. stocks fell on Tuesday in an erratic session, bouncing between losses and gains as investors tried to keep up with a barrage of headlines. Bond yields, oil and gold prices all rose.

A day after fears of oil inflation pushed the $Dow Jones Industrial Average(.DJI.US)$ into a correction, the blue-chip index fell 184.74 points, or 0.6%, to 32632.64. The $S&P 500 Index(.SPX.US)$ dropped 30.39 points, or 0.7%, to 4170.70 and the technology-heavy $Nasdaq Composite Index(.IXIC.US)$ slid 35.41 points, or 0.3%, to 12795.55.

On Tuesday, the Dow experienced its first "death cross" since March 23, 2020, the nadir of the pandemic selloff. A “death cross” is a situation when the 50-day moving average falls below the 200-day moving average. That is a sign that short-term sentiment has fallen lower than long-term sentiment.

Investors continue to assess the growing concern that surging commodity prices will fuel inflation and weigh on global economic growth.

Energy was the only sector to close well within positive territory.

The Consumer Discretionary sector also eked out a slight gain.

52% of US stocks advanced.

68% of US stocks trade below their 200-day moving average (68% yesterday, 66% a week ago).

US Sectors