Good morning team, Chris Conway your Chief Market and Trading Strategist here with your First Look.
SPI futures are pointing to a sharp, 50-point drop on the open this morning despite US markets closing slightly stronger overnight.
The reason for the selloff is the fact that North Korea has fired a missile over Japan, so geopolitical tensions are weighing.
The big move overnight came in the oil market with US crude shedding more than 3% and Brent, the global benchmark, falling more than 1% as the refinery sector in Texas was battered by Hurricane Harvey.
What’s on today:
No local data
Reporting today: Caltex, Downer EDI
Overseas data: Japan jobless rate July; German GfK consumer confidence September; US S&P CoreLogic CS house prices June, Conference Board consumer confidence August
SPI futures down 48 point, to 5629
AUD +0.4% to 79.64 US cents
On Wall St, Dow flat, S&P 500 +0.1%, Nasdaq +0.3%
In New York, BHP +0.6%, Rio +0.9%
In Europe, Stoxx 50 -0.5%, FTSE closed, CAC -0.5%, DAX -0.4%
Spot gold +1.5% to $US1310.37 an ounce
Brent crude -1.4% to $US51.68 a barrel
US oil -3.2% to $US46.34 a barrel
Iron ore -1.6% to $US77.15 a tonne
Dalian iron ore -0.4% to 568 yuan
Steam coal +0.3% to $US97.75, Met coal +0.0% to $US196.00
LME closed for a bank holiday in the UK
10-year bond yield: US 2.16%, Germany 0.37%, Australia 2.66%
What happened overnight: