Australian shares are headed for a weak start, after Wall Street fell over a spike in oil prices.
Markets at 7:15am (AEST):
- ASX SPI 200 futures -0.3pc, ASX 200 (Monday close) +0.5pc to 5,983.
- AUD: 75.27 US cents, 54.65 British pence, 62.33 Euro cents, 82.26 Japanese yen, $NZ1.07
- US: Dow Jones -0.6pc at 24,163, S&P 500 -0.8pc at 2,648, Nasdaq -0.75pc at 7,066
- Europe: FTSE +0.1pc at 7,509, DAX +0.25pc at 12,612, Euro Stoxx 50 +0.5pc at 3,537
- Commodities: Brent crude +0.7pc at $US75.16/barrel, spot gold -0.5pc at $US1,314.95/ounce
The Dow Jones fell 0.6 per cent, or 148 points, to 24,163.
The S&P 500 dropped 0.8 per cent and the Nasdaq slipped 0.75 per cent.
Every S&P sector posted losses, with telecommunications and healthcare being among the worst performers.
Higher oil prices, rising business costs
Brent crude oil lifted 0.7 per cent to $US75.20 US dollars a barrel — adding to investors’ concerns about oil supply being disrupted in the Middle East, and rising costs for companies (particularly petrol and transportation costs).
This after Israeli Prime Minister Benjamin Netanyahu said he had evidence that Iran lied about its nuclear weapons program.
In particular, that Iran allegedly continued to develop nuclear weapons program even after signing a deal in 2015 to end its program in return for economic sanctions being lifted.
On the plus side, McDonald’s shares surged 5.8 per cent, after it posted a strong quarterly profit, which beat market expectations.
Australian market today
The Australian dollar has slipped to 75.3 US cents, 54.7 British pence and 62.3 Euro cents.
Gold has slipped to $1,315 US dollars an ounce.
In today’s economic news, Victoria will release its state budget today.
The Reserve Bank will meet today, and is expected to keep the cash rate at the record low 1.5 per cent for the 19th consecutive month.
ANZ is due to report its half-year results.
More to come.