The Australian share market is expected to open weaker after European stocks fell on a quiet night of trade with US and UK markets closed for public holidays.
At 0700 AEST on Tuesday, the Australian share price futures index was down 14 points, or 0.23 per cent, at 6,002 points.
The Australian share market on Monday closed lower after weaker oil prices weighed heavily on the energy giants and mining giant BHP Billiton.
The benchmark S&P/ASX200 was down 28.8 points, or 0.48 per cent, at 6,004 points, while the broader All Ordinaries index was down 27.4 points, or 0.45 per cent, at 6,113.6 points.
In economics news on Tuesday, the ANZ-Roy Morgan weekly consumer confidence survey is released.
US markets were closed on Monday for the memorial day public holiday.
The spot price of gold in Sydney at 0700 AEST was $US1,298.70 per fine ounce, from $US1,296.76 per fine ounce on Monday.
IRON ORE: $64.49 +0.00(June contract)
The U.S. is producing more oil than ever, but when it comes to pulling the strings of the market, Saudi Arabia is still king.
The euro fell to the lowest level since November 2017 against the dollar after Italy’s president scuttled an attempt by a coalition of Italian antiestablishment parties to form a government. One euro traded for $1.16, down from $1.17 earlier Monday.
Rabobank said investors’ relief at developments in Italy, where Italian President Sergio Mattarella on Sunday prevented two antiestablishment parties from forming a new government and taking power following the proposal of a euroskeptic finance minister, could be quickly over.
The Australian dollar is lower after European stocks lost ground in a quiet night of trade with US and UK markets closed for public holidays.
At 0635 AEST on Tuesday, the local currency was worth 75.45 US cents, down from 75.75 US cents on Monday.
European stocks gave up early gains and bond yields recovered from lows as early elections loomed in Italy after the anti-establishment 5-Star and League parties abandoned plans to form a government.
Germany’s DAX 30 was 0.58 per cent lower, and France’s CAC 40 fell 0.61 per cent, MSCI’s main European index was down 0.1 per cent, and UK markets were closed for a bank holiday,
Early in the European session, the euro, Italy’s government debt and its FTSE MIB stock index all rose in opening trades. But those gains quickly dissipated.
“We doubt this rally in markets has legs as what this means is that the next election in Italy becomes a referendum vote on euro membership,” said Frederik Ducrozet, senior European economist at Pictet Wealth Management.
Italian President Sergio Mattarella is expected to ask former International Monetary Fund official Carlo Cottarelli on Monday to head a stopgap government.
His refusal to accept as economy minister Paolo Savona, who had threatened to pull Italy out of the euro, forced the 5-Star and the League to abandon efforts to form a government.
Asian stocks were higher on signs the United States and North Korea are still working towards holding a summit.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.5 per cent. Japan’s Nikkei rose 0.1 per cent, South Korea’s KOSPI rose 0.74 per cent, buoyed by stocks which are seen as benefitting from a further thawing in tensions with Pyongyang.
President Donald Trump said on Sunday a US team had arrived in North Korea to prepare for a proposed summit between him and North Korean leader Kim Jong Un, which Trump pulled out of last week before reconsidering.
“While we can’t say for sure how much they can agree, both sides seem to want to make progress,” said Nobuhiko Kuramochi, chief strategist at Mizuho Securities.
On Tuesday, New Zealand’s S&P/NZX 50 index rose 0.08 per cent, to 8,645.20.