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The ASX200 is expected to give up around three quarters of a per cent, after the Nasdaq and Dow Jones both lost 1.4 per cent, and the S&P 500, 1.2 per cent.
The poor performance in the US came as Reserve Bank leaders questioned why there would be interest rate cuts amid concerning US inflation data suggesting levels weren’t reducing toward its target inflation rate.
The Australian Bureau of Statistics will release Retail and International Trade data later this morning.
In small cap stocks to watch: Mount Gibson Iron (ASX:MGX) has achieved US$111 a tonne for its high-grade iron ore sales to China, seeing its cash position increase last month, despite operations being interrupted by wet season rainfall; and, MC Mining (ASX:MCM) shareholders have been granted another two weeks to think about the 16 cent per share off-market takeover offer from Goldway Capital Investment. MC Mining’s independent board committee unanimously recommended shareholders do not accept the offer.
One Aussie dollar has been buying US65.8 cents.
Copper lifted to its highest pricing in well over a year, to be above US$4.20, and Brent Crude pushed above US$91 a barrel – which is an increase of more than 12 per cent in a month. Oil is up on fears the Middle East conflict could escalate. But iron ore has struggled to hold above US$100 a tonne (it’s been at $US100.41 this morning) and gold gave up a little of its gains yesterday, to be around US$2292 an ounce.
Natural gas has shed 3.88 per cent to US$1.77 per million British thermal units.
