ASX likely to slip, Wall Street rebounds despite ‘tremendous amount of uncertainty’

ASX likely to slip, Wall Street rebounds despite ‘tremendous amount of uncertainty’

Australian shares are expected to fall slightly this morning, as copper prices dropped to a 16-month low and commodity prices continued to slump over worries about a possible global economic slowdown.

ASX futures were down 0.1 per cent, to 6,416 points, by 7:25am AEST.

The Australian dollar was buying 68.95 US cents, after sliding 0.5 per cent overnight.

US Federal Reserve chairman Jerome Powell testified before Congress for a second day — a day after saying the Fed was committed to cutting inflation at all costs, and acknowledged a recession was “certainly a possibility”.

Investors have been weighing the risk of hefty interest rate rises tipping economies into recession.

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As fixed mortgages end and interest rates rise, many risk losing their homes(Nassim Khadem)

“What we’re seeing here is a [stock] market trying to absorb the Fed’s tightening and basically trying to put in a low in a bear market,” said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.

“We have [bond] yields that are coming down, and so that’s helping stocks.

‘Market is confused’

On Wall Street, the Nasdaq Composite rebounded by 1.6 per cent, to 11,232 points, as technology and growth stocks outperformed.

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