Close up of red and green numbers on ASX board

ASX likely to rise despite economic concerns, Wall Street struggles to recover from heavy losses

The Australian stock market is expected to open higher despite another overnight decline on Wall Street, as investors weighed the potential for a US recession.

Investor sentiment was impacted by China’s disappointing economic data, which showed that: extension of the COVID-19 lockdowns took a heavy toll on consumption, industrial production and employment in April, fueling fears of a global slowdown.

ASX futures rose 0.3 percent to 7,100 points, Tuesday at 8:45 a.m. AEST.

The Australian dollar rose slightly to 69.7 cents.

“Chinese economic activity may recover in May as the number of new infections has declined recently and the number of medium-to-high-risk areas has declined,” said Joseph Capurso, Commonwealth Bank’s head of international economics.

Gold rose 0.7 percent to $1,824 an ounce.

Oil prices rose as the European Union moved closer to an import ban on Russian crude and traders saw signs that the COVID-19 pandemic was easing in the worst-hit areas of China, suggesting a significant recovery in demand in China. the make is.

Brent oil futures were up 2.4 percent to $114 a barrel.

Bitcoin fell 5 percent to $29,726 dollars.

Profit taking after a rebound

“When you see big ‘up’ days, I’m not surprised to see some profit-taking the next day,” said Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder, who referred to last Friday’s recovery on Wall Street.

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