Australian shares are set to open lower. US equities reversed opening losses to trade little change near 2pm in New York. Both oil and gold were higher, though off session peaks, as the US and Israel continued to attack Iran.
The Australian Financial Review Business Summit opens on Tuesday morning with a keynote address from Michele Bullock, governor of the Reserve Bank of Australia. Follow our coverage here.
ASX 200 futures were down 19 points or 0.2 per cent to 9138 near 7.15am AEDT. The S&P 500 was 0.02 per cent lower, having fluctuated modestly higher and lower. Consumer discretionary led eight of the US benchmark’s 11 industry sectors down. Energy rallied on oil’s surge.
Oil surged to $US82 a barrel in early US trading before settling down, “in part due to hopes that disruptions in the Strait of Hormuz are limited”, Goldman Sachs said in a note. Brent Crude was 8.3 per cent higher to $US78.90 at 3.09pm in New York.
“Our markets team expects pressure on equity/credit, strength in [the US] dollar and yen, impacts on oil exporters v importers across assets and flatter yield curves,” Goldman also said. “However, just as oil price spikes can reverse quickly, equities often recover from geopolitical shocks and sometimes rally strongly once uncertainty eases or policies change.”
Market highlights
ASX 200 futures are pointing down 19 points or 0.2 per cent to 9138.
All US prices near 3.15pm New York time.
AUD -0.5% to US70.82¢Bitcoin +5.4% to $US68,954On Wall St: Dow -0.2% S&P -0.02% Nasdaq +0.2%VIX +0.65 to 20.51Gold +1.1% to $US5339.00 an ounceBrent oil +8.3% to $US78.90 a barrelIron ore +0.8% to $US99.10 a tonne10-year yield: US 4.05% Australia 4.63%Today’s agenda
Life360 Inc is expected to report quarterly results on Tuesday. January building approvals are set to be released at 11.30am.
In the UK, Chancellor of the Exchequer Rachel Reeves is to present an update to the budget and economic outlook forecasts.
Australia will release fourth-quarter GDP on Thursday. China will lay out its economic policy agenda for this year, as well as its goals for the 15th Five-Year Plan period (2026-30), at the National People’s Congress also on Thursday. Early Saturday AEDT, the US will release February jobs data.
Top stories
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Reliance on big government hurting the nation globally: BCA Australia needs incentives to boost business investment to help sustain the community’s increasing reliance on government, the BCA says.
Barrenjoey boomerangs back to Magellan in the hope of Macquarie 2.0 The homegrown investment advisory shop’s debut was the worst-kept secret in the market. Its merger with its funds management backer was kept well under wraps.
Middle East conflict ignites new inflation fears for RBA A surge in oil prices will feed through to higher costs at the bowser for consumers and weigh on economic growth.
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