ASX 200 Live Update: ASX Set to Decline as S&P 500 Dips Amid New Credit Concerns
Australian shares are poised for a modest opening, as futures indicate a slight rebound from earlier losses. The volatility on Wall Street was influenced by credit concerns, particularly after two regional banks disclosed issues with their loan portfolios. The S&P 500 dipped, reflecting growing anxiety in the financial markets.
Credit Concerns Hit US Markets
Zions Bancorp saw its shares plunge by 10% following a $50 million charge-off on a loan managed by its subsidiary, California Bank & Trust, based in San Diego. Western Alliance Bancorp also faced difficulties, with its shares decreasing by 9% after a borrower failed to provide the necessary collateral for loans. These setbacks contributed to a regional bank index decline of nearly 5%, bringing it close to its August lows.
Global Market Overview
| Market Indicator | Change |
|---|---|
| ASX 200 Futures | +6 points (0.1%) to 9105 |
| Dow Index | -0.2% |
| S&P 500 | -0.2% |
| NASDAQ | -0.04% |
| VIX (Volatility Index) | +2.29 to 22.93 |
| Gold Prices | +2% to $4290.00 per ounce |
| Brent Oil | -1.1% to $61.26 per barrel |
| Iron Ore | +0.2% to $105.30 per tonne |
| 10-Year Yield (US) | 3.98% |
| 10-Year Yield (Australia) | 4.15% |
Today’s Agenda and Notable Meetings
- Clinuvel Pharmaceuticals Annual Meeting
- PWR Holdings Annual Meeting
- Silex Systems Annual Meeting
Top Financial Stories
- The Australian Securities and Investments Commission (ASIC) has faced criticism for its slow response to questionable financial products.
- Phillip Coorey discusses the Australian Liberal Party’s challenges in restoring its reputation through fiscal prudence.
- Armaguard’s CEO, Peter Fox, expresses confidence in securing a new enterprise deal following regulatory approval.
- Strategists predict potential corrections in gold prices before the year’s end due to shifts in US monetary policy.
This environment of uncertainty with credit markets continues to shape investment strategies as both local and international markets react to financial developments. Keep an eye on future updates as they unfold. Visit Emegypt for the latest news and insights.
