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Australian shares are tipped to open Week 25 as much as -0.17% lower as traders Down Under take in the sudden escalation of hostilities between Israel and Iran – and what it means for securities and commodity prices.
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Attacks have been limited thus far, but their early impact is weighing heavily: Investors are rushing into gold and investing in fast-spiking oil, just days after the ASX 200 actually cracked a new all-time high last Tuesday.
That jubilation feels long forgotten on news Israel launched missiles at the Islamic Republic’s nuclear program. One attack salvo hit South Pars, the world’s largest gas field.
Everything is best encapsulated by the VIX Index – Wall Street’s “fear gauge” – as it ticked over to just above 20; a split right between “calm” and “very nervous.”
Iran’s warning it may close key shipping route the Straight of Hormuz hasn’t helped either.
Besides all these worries, China will also be releasing several key economic reports through today (mostly after lunchtime) that will track housing prices, industrial production levels, and the Middle Kingdom’s unemployment rate.
In Aussie company news, E79 Gold Mines (ASX:E79) is back in the headlines in Week 25 after significantly expanding its Mountain Home Project by buying up another 498sqkm in the “highly prospective” McArthur Basin area.
And, Adisyn (ASX:AI1) has wrapped up its $520K Israel-funded graphene R&D program.
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Looking at forex, the Aussie dollar is buying 64.8 US cents.
To commodities, which are in the greenback,
Gold continues to gleam heading into Week 25 as traders turn to the safe haven metal through these uncertain times. Last sold price stands at $3,452.
Iron Ore has kept sliding, dipping another -0.7% to sell at $93.85 a tonne in Singapore,
Brent Crude is trading another +2.7% higher, at $76.28,
US natgas futures have leapt to $3.68/gigajoule to start the week.
That’s Market Open, I’m Isaac McIntyre, stick with us for HotCopper’s Market Update.
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