ASX poised to fall, Wall Street and European markets sink on signs of recession

Australian stocks are poised to fall on growing fears that the central bank’s efforts to rein in rising consumer prices with interest rate hikes to reduce inflation will weaken the global economy and lead to a recession.

ASX futures fell 0.6 percent to 6,910 points as of 8:25 a.m. AEST.

The Australian dollar was stable at 68.8 cents on the dollar.

Wall Street and European markets plunged overnight, after Russia’s state-owned energy giant Gazprom said it would cut off natural gas supplies to Europe for three days at the end of the month.

The S&P 500 sank 2.1 percent to close the session at 4,138 points.

The Nasdaq fell 2.6 percent to 12.3812, while the Dow Jones Industrial Average fell 1.9 percent to 33,064.

Spot gold fell 0.8 percent to $1,734.32 an ounce.

Markets await Powell’s speech

A closely watched recession signal, the inversion of the US Treasury yield curve, widened overnight.

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