Australian share are poised to open higher, even as Wall Street fluctuated and as oil tumbled amid concerns about the outlook for global demand and interest rates.
Futures were up 0.3 per cent or 23 points to 7025 at 7.50am AEDT
Global benchmark Brent dropped more than 2 per cent slipping below $US80 a barrel for the first time since July. US benchmark West Texas Intermediate was below $US76 a barrel, down 2.8 per cent near 2.30pm in New York following a 4.3 per cent decline the previous session.
The Australian dollar slipped 0.5 per cent to US64¢ as markets were still pondering the effect of the Reserve Bank’s rate increase and a softening of its tightening bias.
“The Aussie Dollar may have been impacted by lower commodity prices as Brent oil fell to below $US80 per barrel on economic growth concerns,” said Harry Ottley, an economist at CBA. The local currency climbed a two-month high of US65.22¢ on Tuesday after the RBA’s rate increase to 4.35 per cent.
Australian three-year bond yields stood at 4.14 per cent and the 10-year at 4.521 per cent. Bond yields have fallen sharply since last week.
Overnight
Shares in New York were struggling to extend their fast start to November. According to preliminary data, the S&P 500 gained 4.71 points, or 0.11 per cent, to end at 4,383.09 points, while the Nasdaq Composite gained 10.56 points, or 0.08 per cent, to 13,650.41. The Dow Jones Industrial Average fell 39.15 points, or 0.11 per cent, to 34,113.45.
Gold dipped below $US1950 an ounce, after having flirted with a move above $US2000 late last month.
Federal Reserve chairman Jerome Powell did not comment on monetary policy in opening remarks at the US central bank statistics conference on Wednesday. He is scheduled to speak at another conference on Thursday.
Longer-dated yields fell and the 10-year Treasury yield was down on the day after a $US40 billion auction analysts viewed as acceptable given the increased size.
China will release October CPI and PPI at 12.30pm (AEDT) and Japan will publish its September current account.
Stocks in focus
NAB, Orica and Xero release earnings results.
Amcor, Cooper Energy, Myer, Nine Entertainment, Seven West Media and Star Entertainment all host annual meetings.
Shares in Westpac trade ex-dividend.
Read More: ASX to rise, Wall St fluctuates, oil extends collapse