The Australian share market is expected to open flat on Thursday following a mixed session on Wall Street overnight.
Six of the S&P 500 industry sectors rose, led by utilities, while five fell after a slide in energy. The session was a reflection of mixed earnings reports from big US companies and signs that inflation remains high globally.
Tesla announced its fourth price cut in the US this year, with the electric-vehicle company lowering prices for its two top-selling models.
CEO Elon Musk said this was not the start of a price war, stating the company was lowering prices to enable affordability at scale.
It comes ahead of Tesla’s first-quarter earnings, which will shine a light on how previous cuts affected the company’s profit margins.
The news weighed heavily on Wall Street, and high-growth and tech stocks also contributed to pushing the market down following higher yields in the bond market. The yield rise was prompted by a report showing UK inflation stayed above 10 per cent for seven consecutive months.
Meanwhile, European markets were also mixed.
Oil prices dipped as the dollar rebounded, and a mixed oil inventory report raised demand concerns. WTI crude is back under the $80 level, with suggestions that it could continue to drop on strong dollar trade.
However, gold prices have risen back above US$2000 an ounce. It appears the precious metal is providing a safe haven during the next wave of earnings reports and as the debate over rate hikes continues.
