Home / Business / Wall Street slides due to the collapse of oil prices, the technological bounce does not boost the market

Wall Street slides due to the collapse of oil prices, the technological bounce does not boost the market



Updated

December 7, 2017, 08:39:13

Despite a drop in commodity prices overnight, Australian stocks are expected to start the day higher.

Snapshot of the market at 8:25 a.m. (AEDT):

  • ASX SPI 200 futures + 0.3pc at 5.9.670, ASX 200 (close on Wednesday) -0.4pc at 5.946
  • AUD: 75.63 US cents US, 56.47 British pennies, 64.09 cents, 84.83 Japanese yen, $ NZ1.10
  • US. US: Dow Jones -0.2pc to 24,141, S & P 500 to 2,629, Nasdaq + 0.2pc to 6,776
  • Europe: FTSE + 0.3pc to 7,348, DAX -0.4pc to 12,999, Euro Stoxx 50 -0.3pc to 3.562
  • Raw materials: crude Brent -2.6pc to $ US61.22 / barrel, spot gold -0.1pc to $ US1,264.56 / ounce, iron ore -3.7pc to $ US69.36 / t

technology does not compensate for oil slipping [19659013] The technology sector continued to recover, with Microsoft, Facebook and Google shares jumping by more than 1.4 percent each.

This provided a boost to the Nasdaq, which closed 0.3 percent higher at 6,776.

But there was a lackluster commercial activity in the S & P 500, which was at break-even.

However, the Dow Jones has fallen by 0.2 percent.

The broader US market UU He paused while investors waited for more details about what the final tax reform of Congress would look like.

There are currently big differences between the bills of competitive tax reform of the Senate and the House of Representatives that must be reconciled.

A key difference, in particular, is when the corporate tax cuts will be introduced – immediately (as proposed by the House) or in 2019 (according to the Senate version).

The worst S & P sector, which weighed on the overall market after a sharp fall in oil prices.

The price of Brent crude fell 2.6 percent overnight to $ US61.22 per barrel.

This happened despite last week's agreement between Russia and the OPEC nations, which includes Saudi Arabia, Iran and Iraq, to ​​reduce oil production by 1.8 million barrels p Until the end of 2018.

"What harms prices is the combination of technical prices and all the good news that is being quoted, record levels of production in the US and the fact that gasoline and distillate stocks increased last week" said AxiTrader. The main market strategist, Greg McKenna.

The Australian market today

The Australian dollar plummeted after Thursday's GDP figures showed slower-than-expected economic growth.

It fell 0.5 percent against the dollar and is buying 75.63 cents.

The local currency also fell against other major currencies: the pound sterling (-0.1%), the euro (-0.2%), the Japanese yen (-0.9%) and the New Zealand dollar (-0.6%) . [19659014] "The Australian dollar is likely to trade at global risk," said ANZ's Australian economy chief David Plank.

"The US government continues to debate the tax reform, the debate on Brexit is heating up and the talks of the German coalition are ongoing."

Mr. Plank also noted: "The President of the United States the position on Jerusalem also increases the political risk. "

Iron ore prices fell 3.7 percent to $ US69.36 / ton.

" This precaution was probably caused by another large increase in inventories, "said Plank. [19659014]" The constant chatter on the curbs in [China’s] the real estate market and the steel industry also played a negative role in the market [iron ore]. "

In economic matters, the Bureau of Statistics will publish its October trade balance figures, which measures the difference in value between imports and exports of the nation.

Economists polled by Reuters expect a surplus of $ 1.37 billion.

Topics:

stock Exchange,

Company news,

economic trends,

coin,

Australia

First published

December 7, 2017, 08:09:20


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