The ASX200 is likely to lift in early trading, with ASX Futures pointing to a 28-point or 0.4% gain for the local bourse.
Crude oil and US Treasury yields continued to fall in overnight trading, with oil reaching July lows of US$75.63 (West Texas Crude) after a 2.36% drop overnight.
Small gains in Info Tech and Real Estate lifted the US market, extending the S&P500’s (+0.10%) positive streak to eight days and the Nasdaq’s (+0.08%) to nine.
The Dow faltered however, falling 0.12% after a six-day streak in the green.
Markets in Asia and Europe faltered overnight, with the Nikkei 225 finishing 0.3% lower, the German DAX down 0.4% and the UK FTSE100 shedding 0.2%.
Last week saw positive movement in stocks after multiple central banks left interest rates on hold, potentially signalling an end to their campaign against inflation, but doubts have started to creep in this week.
Currencies and commodities
The US dollar gained against the Yen and Aussie overnight but slipped against the Euro.
The Euro gained 0.09% to US$1.0710, the Yen slipped 0.41% to 150.9800 yen per dollar and the Australian dollar shed 0.51% to US$0.6403.
US Nymex joined West Texas in a slump with a 2.29% dip to US$75.6 overnight, after US crude oil stocks rose by almost 12 million barrels last week according to American Petroleum Institute figures.
"The market is clearly less concerned about the potential for Middle Eastern supply disruptions and is instead focused on an easing in the balance," ING analysts Warren Patterson and Ewa Manthey said in a note to clients.
Gold has also slipped, shedding a full 1% to US$1,995.7 per ounce as the precious metal failed to benefit from falling US Treasury yields.
Copper also fell, shedding 1.29% despite Chinese imports reaching a 10-month high among falling inventories.
On the small cap front
The S&P ASX Small Ordinaries gained 0.47% or 12.5 points in trading yesterday, finishing at 2,691.3.
You can read more about the following throughout the day.
- Krakatoa Resources Ltd (ASX:KTA) intersected thick pegmatites at the King Tamba Project, following up on a 4.3% lithium rock chip sample. Samples are enroute for assay.
- FYI Resources Ltd (ASX:FYI, OTCQX:FYIRF) secured a $3 million grant through the WA Government’s Investment Attraction Fund, which will be used to advance its high-purity alumina (HPA) project.
- Brightstar Resources Ltd (ASX:BTR) mined first ore at the Selkirk Deposit within the Menzies Gold Project, achieving a second month of higher-than-anticipated productivity.
- Alkane Resources Ltd (ASX:ALK, OTC:ALKEF) received assays from drilling at the Kaiser deposit of the Northern Molong Porphyry Project, including very broad results of 161 metres at 1.02 g/t gold equivalent.
- Helix Resources Ltd (ASX:HLX) subsidiary Ionick Metals has executed an option agreement with Alchemy Resources to acquire an 80% interest in the West Lynn Nickel Laterite Project.