Morning traders. Thanks loungers, especially @Ravgnome.
Outlook for the day: Negative after oil rallied and European stocks and US stock futures fell during last night's US public holiday.
ASX futures: down 23 points or 0.27%
Overnight themes:
Europe's stock benchmark slumped to its lowest in more than a month and US stock futures retreated as the week-long Israel-Iran conflict continued and investors fretted about possible direct US involvement in attacks on Iran.
The Stoxx 600 dropped 0.83% to a third straight loss. The pan-European stock benchmark posted its weakest close since May 8. Stock benchmarks in Germany, France, Italy and Spain all lost at least 1.1%. Britain's FTSE 100 index shed 0.58%.
US stock futures tracked lower while markets were closed for the Juneteenth US public holiday. Dow and S&P 500 futures were both down 0.91%. Nasdaq futures were off 1.1%.
Risk appetite on global markets was constrained by questions over whether the US will take an active role in Israeli attempts to force regime change in Iran. Overnight, President Donald Trump said he would decide within two weeks whether or not the US enters the conflict. "Based on the fact that there's a substantial chance of negotiations that may or may not take place with Iran in the near future, I will make my decision whether or not to go within the next two weeks," Trump said in a statement issued through his press secretary. A day earlier he told reporters he had not made up his mind whether or not to get directly involved. "I may do it," he said. "I may not do it."
Oil jumped to a seven-month high on fears the conflict may disrupt supplies through the Strait of Hormuz, a key shipping channel for around a fifth of the world's crude supplies. Brent crude settled US$2.15 or 2.8% higher at US$78.85 a barrel. The European energy sector firmed 0.8%.
Europe's volatility index climbed to its highest since May 23.
Travel stocks were among the biggest drags in European trade. The healthcare and utilities sectors rose alongside energy producers.
Iron ore posted its first gain in six sessions following a recovery in demand last week. Consumption of iron ore fines increased 2.4% week-on-week to the highest in seven months, according to consultancy Mysteel. "Mills consumed larger amounts of the feedstock to maintain their elevated production," the consultancy reported. Benchmark ore on the Dalian Commodity Exchange firmed 0.43% to US$97.07 a metric ton.
Risk aversion and a brier rally in the US dollar helped drag copper to its lowest in a week. Benchmark copper on the London Metal Exchange declined 0.37% to US$9,619.50 a metric ton. "A stronger U.S. dollar on higher geopolitical concerns tends to weaken U.S. dollar-based prices. Long-only funds are sitting on the sidelines due to elevated risk concerns," SP Angel analyst John Meyer told Reuters.
Spot gold marked time in low-volume action as traders balanced heightened geopolitical tensions against indications from Wednesday's policy announcement that the US Federal Reserve will maintain benchmark rates higher for longer. The spot price was lately up US$1.21 or 0.04% to US$3,369.95 an ounce. Gold futures declined US$20.80 or 0.61% to US$3,387.30 in the aftermath of the Fed rates announcement and press conference.
Key events today:
US Philly Fed Manufacturing Index - tonight
Stoxx 600: down 0.83%
S&P 500: US markets closed overnight
Dow: US markets closed overnight
Nasdaq: US markets closed overnight
VIX: US markets closed overnight
US 10-year treasury yield: up 1 point to 4.396%
Dollar: down 0.65% to 64.64 US cents
Iron ore (Dalian): up 0.43% to US$97.07
Brent crude: up US$2.15 or 2.8% to US$78.85
Gold (futures): down US$20.80 or 0.61% to US$3,387.30
Gold (spot): up US$1.21 or 0.04% to US$3,369.95
Silver (spot): down 35 US cents or 0.95% to US$36,39
Palladium (spot): down US$2 or 0.19% to US$1,045
Antimony (China ore): down 1.87% to US$19,940
NYSE Arca Gold Bugs: US markets closed overnight
Bitcoin: down 0.4% to US$104,326
Copper (LME): down 0.37% to US$9,619.50
Nickel (LME): down 0.36% to US$15,040
Lithium carbonate (China spot battery grade): down 0.06% to 7,418 yuan
Global X Lithium & Battery Tech ETF: US markets closed overnight
Uranium (spot): steady at US$75.25
Global X Uranium ETF(URA): US markets closed overnight
BHP: down 2.56% (UK)
