The Australian sharemarket is set for another rough day after the price of oil surged again, nearing $US110 a barrel.
At the close on Thursday, the benchmark ASX slumped 92 points or 1.03 per cent to 8819.40, while the broader All Ordinaries sold off 94.60 points or 1.04 per cent to 9008.30 for the worst trading day in six months.
On Friday morning, ASX 200 futures were down 78 pints or 0.9 per cent to 8733.
Overnight, the price of oil moved higher than Thursday’s $US100 a barrel price, nearing $US109 near 5pm in New York, with investors concerned about the flare-ups in the US-Iran war. It was about $107 at 8.45am (AEST).
ASX 200 futures were down 78 points or 0.9 per cent to 8733 before the open on Friday.
Investors will also be worried by expectations the US Federal Reserve could raise interest rates.
Markets have now factored in a 70 per cent probability of a 25 basis point increase by the Fed.Meanwhile, the European Central Bank overnight raised interest rates by 25 basis points for the second time this year, warning inflation was continuing to be an issue.
ECB president Christine Lagarde said above-target inflation “will be longer lasting than we had anticipated”.
Wall Street finished lower overnight, thanks to new worries about inflation and concerns with a sharp rise in bond yields, meaning higher interest costs for governments and companies.
The S&P 500 fell 0.6 per cent, while the Nasdaq lost 0.7 per cent and the Dow was down 0.6 per cent.
The ASX opens at 10am.
More to come
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