Australian shares are set to open lower, reflecting weakness in New York as renewed fighting in the Middle East pushed oil prices higher after Iran attacked an energy facility in the United Arab Emirates.

ASX 200 futures were down 70 points or 0.8 per cent to 8645. The S&P 500 slipped 0.4 per cent, with materials and industrials pacing 10 of 11 industry sectors lower. Energy advanced.

The mega-cap tech stocks split, with Amazon the biggest advancer, up 1.4 per cent after unveiling a suite of logistics services that will let businesses buy its existing freight and distribution offerings as a package.

Atlassian rose 4.9 per cent to $US93.19, extending its post-results surge to near 35 per cent.

GameStop is trying to buy eBay for about $US56 billion ($78 billion) in cash and stock, a bold attempt by chief executive Ryan Cohen to take over a storied e-commerce name several times larger. Shares in eBay were 5.1 per cent higher, GameStop’s tumbled 10 per cent.

Shares in Berkshire Hathaway shed 1 per cent. The firm’s cash hoard jumped to $US397 billion in the first quarter as it offloaded a net $US8.1 billion of equity holdings in the period, the Omaha, Nebraska-based conglomerate said in a statement on the weekend.

With Bloomberg, Reuters

Market highlights

ASX 200 futures are pointing down 70 points or 0.8 per cent to 8645.
All US prices near 5.15pm New York time (7.15am AEST).

AUD -0.5% to US71.66¢Bitcoin +1.4% to $US80,074On Wall St: Dow -1.1% S&P -0.4% Nasdaq -0.2%VIX +1.30 to 18.29Gold +0.01% to $US4522.56 an ounceBrent oil +5.3% to $113.90 US a barrelIron ore +0.6% to $US108.35 a tonne10-year yield: US 4.44% Australia 4.98%Tuesday’s agenda

Results expected on Tuesday include Westpac, Dexus and Vicinity Centres. After the closing bell in New York, Palantir, Pinterest and Paramount are among the companies set to report.

The key focus on Tuesday will be the Reserve Bank of Australia’s monetary policy decision, announced at 2.30pm. The bank will also release a new set of economic forecasts.

Josh Gilbert, lead analyst for APAC at eToro, says, “The RBA looks set to deliver a third consecutive 25 basis point hike this week, taking the cash rate to 4.35 per cent. Markets are pricing a hike at around 75 per cent, and [the latest] inflation data makes it difficult for the board to sit on its hands.”

Gilbert also said the road ahead beyond May was also important because markets still see another hike in 2026.

“With the inflation impact from energy not done, especially with the Strait of Hormuz remaining effectively closed and the conflict showing little signs of ending, the upside risks for the rest of the year remain firmly on the table.

“The watch point this week is how hawkish the updated Statement on Monetary Policy lands,” he said. “If it shows higher inflation forecasts and lower growth, that combination forces the RBA to keep the door open to further tightening.”

Monthly household spending data is scheduled for release at 11.30am on Tuesday.

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