**ASX Set to Open Lower as Apple Rallies, Global Markets React to Oil Drop**
*Based primarily on the reporting of William McInnes, The Australian Financial Review, with additional insight from recent market data.*
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The Australian stock market is poised for a cautious opening, influenced by significant overseas developments, including a rally in major US technology shares, a sharp drop in oil prices, and shifting economic signals from global markets. As investors prepare for trading on the Australian Securities Exchange (ASX), a variety of intertwining global and domestic factors are shaping expectations for the trading session.
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### Wall Street Sets the Tone
**Major US indices posted mixed results:**
– **Dow Jones Industrial Average:** Declined by 0.7 percent
– **S&P 500:** Managed a 1.1 percent gain
– **Nasdaq Composite:** Rose sharply by 2.0 percent
The clear leader was the technology sector, with Apple at the forefront, surging almost 7 percent in trading after releasing quarterly results that exceeded analyst estimates.
#### Apple’s Performance and Market Impact
Apple posted better-than-expected earnings, defying some market apprehension about demand for its flagship products and continued expansion in its services and wearables divisions. Strong performance in high-margin services such as Apple Music, iCloud, and App Store revenue drove upbeat sentiment, leading to robust buying in the company’s stock and a broader lift across the tech sector.
Key drivers for Apple’s rally included:
– **Services Revenue:** Continued to accelerate, offsetting iPhone shipment concerns
– **Mac Sales:** Rebounded after several slower quarters
– **iPad Sales:** Weaker, but not enough to drag down overall performance
– **Geographic Strategy:** Improved sales trends in key markets, including North America and Europe
Apple’s outperformance provided a shot in the arm to the entire tech sector, with Microsoft, Amazon, and Alphabet (Google’s parent company) also posting notable gains.
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### Oil Prices Take a Tumble
Oil markets experienced a significant pullback as concerns regarding global economic growth overshadowed ongoing geopolitical risks. Brent crude, the international oil price benchmark, slipped by 5.2 percent to settle at around $US69.04 a barrel, while West Texas Intermediate (WTI) dropped 6 percent.
#### Factors Behind the Oil Price Decline:
– **Economic Growth Concerns:** Investors are increasingly wary of slower-than-expected global demand in the wake of mixed economic results from major economies, including the United States and China.
– **Easing Supply Fears:** The US announced the release of additional oil reserves, which temporarily alleviated recent worries about supply disruptions.
– **Geopolitical Developments:** While tensions in the Middle East persist, recent diplomatic efforts have helped assuage immediate fears of escalation.
– **Inventory Reports:** Recent data indicated higher than anticipated oil stockpiles in the US, pointing to softer demand.
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### Treasury Y
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