Good morning team, Chris Conway your Chief Market and Trading Strategist here with your First Look.
Equity investors aren’t taking any chances ahead of Friday’s US jobs report.
SPI futures are down three points, at 5742, with US markets off slightly heading into the NY close.
Oil fell sharply on an unexpected US stockpile surge, hitting energy producers. US listed shares of BHP and Rio were down more than 1.5% at midday in New York.
Iron ore dropped 2.9% to $US87.19 a tonne. Base metals closed little changed.
Part of the reason for oil’s slump was a resurgence in the US dollar after a report showed private employers in the US went on a hiring spree last month.
That helps bolster optimism that Friday’s government jobs report will boost the prospects for a US interest rate increase next week and a faster pace of hikes this year and next. The yield on the US 10-year government note was 4bp higher at 2.56%.
What’s on today:
No local data
Overseas data: China consumer price index; European Central Bank policy meeting
Capital Economics on China CPI: “Following a rise in January to a near-three-year high, consumer price inflation is likely to have fallen last month. We expect headline inflation to have dropped to 1.5 per cent y/y in February. Meanwhile, producer price inflation is likely to have stayed high in February. We have pencilled in 6.5 per cent y/y.”
Trading Ex Div: APO, ASX, BHP, FXL, IGO, MND, OZL, QBE, RWC, S32, TAH, TME, TOX, TTS, VTG
- SPI down three points, at 5742
- AUD at US75.39¢
- Dow Jones -0.1%; S&P500 +0.1%; Nasdaq +0.4%
- FTSE100 -0.1%, CAC +0.1%, DAX flat
- Spot gold -0.5% at $US1209.49 an ounce
- Brent oil -3.8% at $US53.82 a barrel
- Iron ore -2.9% at $US87.19 a tonne
What happened overnight: