Australian shares are poised to fall at the open after as rising US Treasury yields weighed on sentiment.The local currency was up 0.2 per cent to US67.41¢.The yield on the US 10-year note climbed nine basis points as China moved to end the quarantine for inbound visitors.
On Wall Street, tech stocks fell as rising Treasury yields weighed on sentiment, while markets digested prospects for growth and inflation from China’s rollback of COVID-19 isolation measures.The tech-heavy Nasdaq 100 underperformed major benchmarks. Tesla led losses as a report of a plan to temporarily halt production at its China factory rekindled fears about demand risks. Apple touched the lowest since June last year amid the slump in big tech.
“We may get a pivot later on next year from the Federal Reserve where they actually start cutting rates, but that’s going to happen when the situation is going to become much more dire than it is now,” Matt Maley, chief market strategist for Miller Tabak + Co, said on Bloomberg TV. “If we just have this slow grind lower, the Fed’s going to keep interest rates at high levels even if they stop raising rates in any kind of way.
Elsewhere in markets, the outlook for demand from China as the economy reopens boosted the price of oil on Tuesday, along with freezing weather across the US, which prompted refinery closures.