ASX to fall following moves on Wall Street, price of oil continues rising
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price → fall → oil
The Aussie share market is set to open lower in morning trading, as Wall Street closes down across all major exchanges.
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Street → set → exchanges
Meanwhile, the price of oil continues to rise, with Brent Crude trading above $US106 a barrel.
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Crude → continue → US106
Disclaimer: this blog is not intended as investment advice.
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blog → intend → advice
Choose what information you see below by using filters
Key Event
Australia needs an AI 'early warning system', top cybersecurity chief warns
As international warnings about AI's power and capabilities grow, Australia's cyber intelligence chief, Abigail Bradshaw, has weighed in.
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chief → choose → power
She says Australia needs an artificial intelligence "early warning system" and urges organisations to embrace AI for its defensive capabilities.
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Australia → say → capabilities
The ABC's national AI reporter, Cam Wilson, has this story:
Key Event
Global AI stocks fall as industry chiefs call for slowing development
AI-linked stocks plunged worldwide on Monday after leaders of the biggest artificial intelligence companies warned of potentially existential risks from the technology, shaking confidence in the industry, whose vast infrastructure spending has driven world stock markets to record highs.
The selloff rippled through the industry, where companies are increasingly relying on debt and circular financing to fund ambitious AI spending plans even as global borrowing costs, reflected in multi-year-high bond yields, continue to rise.
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costs → have → yields
Anthropic CEO Dario Amodei, in a lengthy essay shared on X on Saturday, called on AI companies to slow the rate at which they advance model capabilities amid mounting fears AI could be misused.
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AI → share → fears
Both Elon Musk, who runs xAI, and Sam Altman, CEO of OpenAI, said they agree with Amodei.
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they → run → Amodei
Altman also said the company would not proceed with an IPO this year, citing safety concerns.
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company → say → concerns
Wall Street's major tech index, the Nasdaq, slid -1.2% to a six-week low in early trading as chip stocks, which have led the AI rally, fell the most, although it pared losses in the early afternoon and was last down -0.4%.
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it → slide → afternoon
"If this does lead to sort of a slowdown and a rethink of AI spending, that will have ramifications for the economy and some important sectors of the stock market, because essentially, we've been running hot based on AI spending," said Steve Sosnick, chief market analyst at Interactive Brokers.
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Sosnick → lead → Brokers
The Philadelphia chip index dropped -5.2%, with Nvidia down -3%, Advanced Micro Devices off -4.5% and Micron falling -5.4%.
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Micron → drop → ?
Semiconductor equipment makers Lam Research, Applied Materials and tech utility Bloom Energy lost more than -6% each.
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makers → lose → %
Earlier in the day, Europe's tech sector fell -2.2%, dragged by ASML's -6% decline, alongside steep losses in Infineon and Siemens Energy, while in Asia, SoftBank plunged more than -10% and chipmakers TSMC and SK Hynix also retreated.
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TSMC → fall → Asia
There are three main reasons inflation is rising.
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inflation → be → ?
Higher interest rates won't fix them
It's no secret that inflation is still too high.
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inflation → fix → them
The RBA reiterates this every six weeks when it meets to discuss whether to hike interest rates again, sending homeowners into an understandable panic.
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it → reiterate → panic
Some of the main drivers of high inflation are supply issues driven by geopolitical tensions, including fuel costs, and American tech giants spending heavily on AI.
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Some → drive → AI
An interest rate hike won't bring these costs down, but it's how the RBA continues to try to curb inflation.
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RBA → bring → inflation
We've already seen three hikes this year, and economists expect another later this month.
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economists → see → another
Business editor Michael Janda gets into this sticky point in his analysis this morning, comparing it to an ancient health practice.
ICYMI:
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Janda → get → practice
Alan Kohler talks about what happened to Brent crude as it once again passed a significant milestone.
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it → talk → milestone
Loading...Key Event
ASX to open in the red
Good morning everyone, and happy Tuesday.
Business reporter Adelaide Miller here to guide you through the morning on the markets blog, where we cover the latest business, finance and economics news from across the globe.
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we → load → globe
To start with, the ASX is set to open lower later this morning, with ASX 200 Futures pointing down -0.2% to 8,731 points.
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Futures → start → points
That's following a sea of red across Wall Street at the close (I'll provide a breakdown shortly).
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I → follow → breakdown
The Aussie dollar is currently trading above 71 US cents.
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dollar → trade → cents
The Aporia
