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🇦🇺 Australia /Economy & Trade

Live: ASX to fall as price of oil surges to more than $US120 a barrel

From ABC Australia · (11m ago) English Critical tone

Summarized and contextualized by DistantNews.

TLDR

  • The Australian share market is expected to open lower, with ASX 200 futures down 0.8%, following mixed results on Wall Street.
  • The price of Brent crude oil surged 8.7% to $US120.92 a barrel, a significant increase that could impact market sentiment.
  • Key market indicators show a slight decline in the Australian dollar, while gold and silver prices also fell, contrasting with a small rise in Bitcoin.

Australian investors are bracing for a cautious start to the trading day, as indicated by the futures market pointing to a lower opening for the ASX. The mixed performance on Wall Street overnight provides little clear direction, leaving the local market to digest a significant surge in oil prices.

The jump in Brent crude oil to over $US120 a barrel is a dominant factor this morning. This sharp increase raises concerns about inflationary pressures and potential impacts on corporate costs and consumer spending, both domestically and globally. While the Australian dollar has seen a slight dip, and precious metals like gold and silver are trading lower, the energy sector may see increased activity.

The Australian share market is set to open lower in morning trading after mixed results on Wall Street.

— Adelaide MillerBusiness reporter, providing an initial market outlook for the day.

Our business reporters are on the live blog to provide real-time updates and insights into how these global financial shifts are playing out in the Australian context. While the blog is not intended as investment advice, it aims to offer a comprehensive overview of the day's financial news, helping our audience understand the forces shaping the market. The interplay between global commodity prices, international market movements, and local economic indicators will be key to watch throughout the trading session.

Meanwhile, the price of oil has surged 8 per cent to more than $US120 a barrel.

— Adelaide MillerBusiness reporter, highlighting a key market mover for the day.
DistantNews Editorial

Originally published by ABC Australia. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

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