Good morning team, Chris Conway your Chief Market and Trading Strategist here with your First Look.
SPI futures are pointing to a flat start later this morning, after US markets closed little changed overnight.
BHP Billiton shares advanced in London and New York overnight, catching up with the strong gains seen in Australia yesterday, despite iron ore prices having fallen sharply prior.
The moves came following a call by hedge fund billionaire Paul Singer to shake up the diversified resources giant.
Singer, through Elliot Management Corp, wants BHP to spin off its $US22 billion worth of US oil and gas assets among other changes.
In London, BHP surged almost 6% in early trade, before paring the advance to end up 2.2%. In late trading in New York, BHP was up 3.4%.
Oil was up for a fifth session in a row after advancing 3.2% last week following a US military strike on Syria. In Russia, Energy Minister Alexander Novak said on Friday his ministry had been in talks with oil companies regarding the need to prolong the six-month deal with OPEC.
Base metals were mostly lower overnight. Iron ore continued its descent, shedding a more moderate 1% to $US74.71 a tonne.
What’s on today:
Local data: NAB March business survey: business conditions, business confidence
Overseas data: Euro zone industrial output February; ZEW expectations April; German ZEW expectations April: UK CPI and PPI outputs March; US NFIB small business optimism March
SPI futures down 1 point to 5898
AUD flat at 74.98 US cents (Overnight range: 74.76 – 75.09)
On Wall St, Dow flat, S&P 500 0.1%, Nasdaq +0.1%
In New York, BHP 3.4%, Rio +0.7%
In Europe, Stoxx 50 -0.4%, FTSE flat, CAC -0.5%, DAX -0.2%
In London, BHP +2.2% (eased from early surge)
Spot gold flat at $US1255.05 an ounce
Brent crude +1.3% to $US55.95 a barrel
Spot iron ore -1% to $US74.71 a tonne
LME aluminium -1.8% to $US1926.50 a tonne
LME copper -1.5% to $US5747 a tonne
10-year bond yield: US 2.36%; Germany 0.20%; Australia 2.57%
What happened overnight: