Market Open: Oil rebounds to add pressure to easing market

ASX today – Rising oil prices and a sliding Wall Street are likely to lead to the ASX 200 opening slightly weaker today.

Brent crude moved back above US$100 a barrel after President Trump again turned down an Iranian proposal related to reopening the Strait of Hormuz and ending the Middle East conflict.

With the threat of continuing high fuel prices adding to inflation fears and the potential of further US hikes, Wall Street had a weak session overnight with all three major indexes lower.

The Dow Jones was down 0.45% to 51,595 points, the S&P 500 fell 0.54% to 7,701 and the Nasdaq Composite was down 0.60% to 26,905

Investors are now pricing roughly a 70% probability of another 25-basis-point US Fed rate increase.

Locally, the market expects the Reserve Bank of Australia to raise rates again today, for the fourth time this year,

ASX 200 futures were around 8,709, with technical support near 8,683–8,694 and resistance around 8,749–8,760. The short-term technical indicators were leaning bearish.

Local market news

Basin Energy (ASX: BSN) continues to expand Newmans discovery strike to 6.7 km;

Terrain Minerals (ASX: TMX) is preparing for a 10,905m RC program at Lightning gold project;

Accelerate Resources (ASX: AX8) has consolidated 100% of the Woodie Woodie North project;

Krakatoa Resources (ASX: KTA) has reported further significant antimony and gold results at Zopkhito; and

West Coast Silver (ASX: WCE) is planning for a diamond drilling program to follow-up Elizabeth Hill silver growth.

Buck and ore

Now – in forex, the Oz dollar is buying US$0.701

Looking at commodities, all in the greenback,

Iron Ore was down 0.14% to $96.92 per tonne in Singapore today,

Brent Crude was up 0.95% to $93.290 per barrel,

Gold was selling at $4114.98,

US natgas futures were down 2.60% to $3.1412 per gigajoule.

That’s HotCopper’s Market Open, I’m Colin Sandell-Hay – happy trading.

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