Good morning team, Chris Conway your Chief Market and Trading Strategist here with your First Look.
SPI futures are pointing to a circa 20-point fall on the open, after US markets closed lower on Friday night.
On Friday, iron ore fell 1.3% to $US67.14 a tonne amid generally positive sentiment for the steelmaking raw material.
Chinese steel mills were willing to buy seaborne cargoes at $US60-65 per tonne cfr, but prices of above $US70 per tonne cfr made them hesitate, a trader in south China told Metal Bulletin.
Commodities overall were mixed over the weekend with gold and copper rising, and oil and aluminium falling.
What’s on today:
No local data on Monday. The key data point will be the second quarter CPI release on Wednesday, RBA governor Phil Lowe is scheduled to speak that day too. Australia second quarter trade prices will be released on Thursday with second quarter PPI on Friday.
Overseas data: Japan Nikkei manufacturing PMI July; Euro zone Markit manufacturing PMI July, Markit services PMI July: US Markit manufacturing PMI July, Markit services PMI July, Existing home sales June
SPI futures down 24 points (-0.4%) to 5640
AUD -0.5% to 79.16 US cents
On Wall St, Dow -0.2%, S&P 500 flat, Nasdaq flat
In New York, BHP -1.1%, Rio -0.9%
In Europe, Stoxx 50 -1.4%, FTSE -0.5%, CAC -1.6%, DAX -1.7%
Spot gold +0.8% to $US1254.98 an ounce
Brent crude -2.8% to $US47.90 a barrel
Iron ore -1.3% to $US67.14 a tonne
Dalian iron ore -2.3% to 505 yuan
LME aluminium -0.1% to $US1915
LME copper +0.8% to $US6004 a tonne
10-year bond yield: US 2.24%, Germany 0.50%, Australia 2.69%
What happened overnight: