Good morning team, Chris Conway your Chief Market and Trading Strategist here with your First Look.
SPI futures are pointing to a circa 30-point jump on the open, after US markets rallied on Friday night.
Oil, iron ore and base metals were all stronger and should provide support.
The spot price of iron ore added 1.8% to $USUS62.69 a tonne as Chinese steel futures rallied.
In London, aluminium added 1.1%, while copper gained 1.8%. Gold increased 0.7%.
Oil leapt 2.3% ahead of this week’s meeting of the Organisation of the Petroleum Exporting Countries at which members are expected to approve, at the very least, an extension of their current lower production quotas.
What’s on today:
Local data: RBA head of economic analysis Alexandra Heath speaks
Overseas data: Japan April trade balance
SPI futures up 30 points or 0.5% to 5752
AUD +0.5% to 74.59 US cents
On Wall St, Dow +0.7%, S&P 500 +0.7%, Nasdaq +0.5%
All three US benchmarks pared gains into the close
In New York, BHP +2.3%, Rio +2.4%
In Europe, Stoxx 50 +0.7%, FTSE +0.5%, CAC +0.7%, DAX +0.4%
Spot gold +0.7% to $US1255.93 an ounce
Brent crude +2.5% to $US53.82 a barrel
US oil +2% to $US50.33 a barrel
Iron ore to +1.8% to $US62.69 a tonne
Dalian iron ore +4% to 493 yuan
LME aluminium +1.1% to $US1943.50
LME copper +1.8% to $US5682 a tonne
10-year bond yield: US 2.23%, Germany 0.36%, Australia 2.47%
Brazil’s 10-year yield fell 27bp to 11.45%
What happened overnight: