Local shares are set to open lower later this morning, despite a late Friday rally on Wall Street, as iron ore continues to plumb fresh recorded lows.
U.S. stocks broke a four-day losing streak by closing slightly higher on Friday, but still posted the biggest weekly loss since the end of January.
The main indexes, which were barely in positive territory the entire session, rallied modestly in the last 15 minutes of trading after the release of prepared remarks by Federal Reserve Chairwoman Janet Yellen on monetary policy.
Yellen said that gradual rate hikes are likely this year but stressed that the central bank would move cautiously.
- SPI futures down 34pts to 5883
- AUD at 77.44 US cents, 92.28 Japanese yen, 71.11 Euro cents and 51.99 British pence.
- On Wall St, S&P 500 +0.2%, Dow +0.2%, Nasdaq +0.6%
- In Europe, Stoxx 50 +0.3%, FTSE -0.6%, CAC +0.6%, DAX +0.2%
- Iron ore drops 4% to $US53.14 per tonne
- Spot gold down $US6.26 or 0.5% to $US1198.55 an ounce
- Brent oil down $US2.78 or 4.7% to $US56.41 a barrel
What’s on today:
Japan industrial production; US personal income, pending home sales; Germany retail sales, CPI.
Stocks to watch:
Credit Suisse remains “neutral” on New Hope Corporation and left its target price at $2.50 a share. It said the short term outlook remains challenging for coal but realised prices, expected to decline in 2HFY15, should be partially offset by a lower Australian dollar.
Deutsche Bank has cut crop protection group Nufarm from “hold” to “sell” with a target price set at $6.05 a share.
Trading ex dividened today: Cedar Woods Properties, Freedom Goods, Homeloans, McMillan Shakespeare, Prime Financial Group.