Australian Sharemarket Set to Open Lower Amid US-Iran Tensions and Oil Price Surge
The Australian sharemarket is poised to open lower on Friday after US stocks fell overnight amid escalating tensions in the Middle East and uncertainty over a deal to reopen the Strait of Hormuz.
The US Dow Jones index dropped 0.85%, while the S&P 500 and Nasdaq fell 0.18% and 0.06%, respectively. The decline was driven by declines in Salesforce, Boeing, and UnitedHealth, which fell 3.18%, 3.34%, and 2.13%, respectively.
The renewed geopolitical tensions pushed oil prices higher, with Brent crude reaching USD83.55 a barrel and US WTI rising to USD78.20/bbl. This surge in energy prices has fueled concerns that the Federal Reserve may need to raise interest rates to contain inflationary pressures.
Economists expect Friday's jobs report to show nonfarm payrolls increased by 80,000, up from the weaker-than-expected 57,000 gain in June. The report will provide insight into the labor market and its potential impact on interest rate decisions.