Australian shares are set to drop as Wall Street closed strongly in a relief rally triggered by Donald Trump’s announcement of a deal with Iran. The VIX fell for a third day.

ASX 200 futures were down 110 points or 1.2 per cent to 8815.

The Dow hit another record while the S&P 500 was on track for its best day since April.

SpaceX shares jumped 20 per cent on their second day of trading, extending Friday’s 19 per cent rally to add $US412 billion ($580 billion) in market value. Shares closed at $US192.46 on Monday, more than 42 per cent above their $US135 IPO price. The move boosts the company’s market value to more than $US2.5 trillion, putting it among the world’s top six companies.

Shares in Fox slumped 16 per cent on the news that it had agreed to buy streaming platform Roku for $US22 billion.

Oil sank as much as 5.7 per cent after the US and Iran agreed to an interim deal to reopen the Strait of Hormuz, though shipowners were still hunting for more details before committing to resuming transits.

Bitcoin climbed to a two-week-high.

Market highlights

ASX 200 futures are pointing down 110 points or 1.2 per cent to 8815.

AUD -0.3% to 70.70US¢Bitcoin +3.9% to $US66,494.01On Wall Street: Dow +0.9%, S&P +1.6%, Nasdaq +3.1%VIX down 1.5 points to 16.2Gold +0.1% to $US4314.55 an ounceBrent oil -4.4% to $US83.46 a barrelIron ore +0.6% to $US102 a tonne10-year yield: US +4.47%, Australia +4.80%

Today’s agenda

The Reserve Bank of Australia is widely expected to hold interest rates at its meeting at 2.30pm today.

The Bank of Japan will also hand down a rates decision – markets have priced in further tightening.

Top stories

Government might fast-track CGT carve-outs as criticism grows | Labor is considering including capital gains tax exemptions in the budget legislation it will ram through the Senate in a bid to shut down political blowback.

CGT, trust changes for businesses risk Australian prosperity: NAB boss | Andrew Irvine has urged a rethink on changes to capital gains and trust tax settings for businesses, highlighting the global battle to attract risk capital.

Labor seeks expanded energy modelling powers | Batteries, EVs and data centres are upending Australia’s electricity grid. The government wants to know how – and what it means for prices.