Good morning team, Chris Conway your Chief Market and Trading Strategist here with your First Look.
SPI futures are pointing to a circa 15-point pop on the open this morning, despite US markets finishing weaker overnight.
The optimism in the futures seems difficult to reconcile however, with the Dow and S&P 500 sliding in New York and the major markets in Europe all closing lower too.
Oil could limit the advance as it has tumbled overnight, with US crude falling below $US43 a barrel.
What’s on today:
Local data: South Australia state budget; RBNZ cash rate setting
RBNZ: The Reserve Bank today left the Official Cash Rate (OCR) unchanged at 1.75 per cent. “Monetary policy will remain accommodative for a considerable period. Numerous uncertainties remain and policy may need to adjust accordingly,” the bank said in a statement.
Overseas data: Euro zone June consumer confidence; US leading index May, FHFA house prices April, Kansas City Fed manufacturing June
SPI futures up 14 points (+0.3%) to 5618
AUD -0.4% to 75.51 US cents (Overnight range: 75.43 – 75.86)
On Wall St, Dow -0.3%, S&P 500 -0.1%, Nasdaq +0.7%
In New York, BHP -0.1%, Rio +0.8%
In Europe, Stoxx 50 -0.2%, FTSE -0.3%, CAC -0.4%, DAX -0.3%
Spot gold +0.3% to $US1246.15 an ounce
Brent crude -2.9% to $US44.68 a barrel
US oil -2.6% to $US42.36 a barrel
Iron ore +0.7% to $US56.82 a tonne
Dalian iron ore +2.6% to 437 yuan
LME aluminium -1% to $US1867 a tonne
LME copper +1.6% to $US5745 a tonne
10-year bond yield: US 2.16%, Germany 0.26%, Australia 2.39%