A flat night on global markets points to a muted start to Australian share trade following yesterday’s record close.
With US exchanges closed for a public holiday, ASX SPI200 index futures edged up five points or less than 0.1 per cent to 7031 as European stocks drifted lower.
The ASX 200 will start the day near yesterday’s all-time closing high of 7079.5, the index’s fifth record close in a row. A year that has started with a bang has seen the local market put on almost 6 per cent in less than three weeks.
World markets took a breather overnight as the US enjoyed a long weekend for Martin Luther King Jr Day. The pan-European benchmark, the Stoxx 600, eased 0.16 per cent in thin trade from Friday’s record close. Britain’s FTSE 100 shed 0.3 per cent, France’s CAC 40 gave up 0.36 per cent and Italy’s FTSE MIB 0.57 per cent. Germany’s DAX bucked the trend with a rise of 0.17 per cent. In the US, S&P 500 index futures overcame a dip to advance 0.35 points or 0.01 per cent.
Investors were in no mood to add to bets at the start of a data-heavy week that includes a World Economic Forum conference in Switzerland, a European Central Bank policy meeting, a slew of economic reports and a big week of US corporate earnings. The Stoxx 600 has gained around 2 per cent this year as a breakthrough in US-China trade relations helped raise optimism over global growth.
“We are seeing a little bit of a pullback, having seen a very good run in markets since the start of the year,” Craig Erlam, market strategist at Oanda in the UK, told Reuters.
Energy stocks drew support from a rise in Brent crude following supply problems in Libya and Iraq. Brent crude hit $US66 a barrel before trimming its gain to 65 cents or 1 per cent at $US65.50 after a military blockade shut down two major oilfields in Libya and a strike stopped work at an oilfield in Iraq.
Iron ore miners fuelled Australian gains yesterday, but traded mixed overnight as the ore price barely moved. BHP’s UK-listed stock slipped 0.56 per cent, while Rio Tinto’s UK stock advanced by the same percentage. The spot price for iron ore landed in China edged up 10 cents or 0.1 per cent to $US95.85 a dry ton.
Gold rose 50 cents or less than 0.1 per cent in electronic trade to $US1,560.80 an ounce.
Zinc broke out to its highest level in two months amid concerns about warehouse inventories. Benchmark zinc on the London Metal Exchange climbed 0.6 per cent after breaking technical resistance. Zinc inventories at LME-approved warehouses are near 20-year lows, according to Reuters. Aluminium improved 0.4 per cent, nickel 0.8 per cent and tin 0.2 per cent. Copper fell 0.2 per cent and lead 0.8 per cent.
The dollar was broadly steady at 68.75 US cents.
The day ahead brings reports on consumer confidence and household spending intentions. The overseas calendar is light over the next 24 hours. The main interest may be US earnings reports from the likes of IBM, Johnson & Johnson, and Halliburton.