Australia shares seen slipping on weak iron ore, global tension

Mon Jun 16, 2014 6:48pm EDT

Related Topics

MELBOURNE, June 17 (Reuters) - Australian shares are set to
open a touch lower on Tuesday on worries about sliding iron ore
prices, the threat of U.S. air strikes in Iraq and an escalating
dispute over Russian gas supplies to Ukraine.
    
    * Share price index futures fell 0.1 percent to
5,411.0, a 6-point discount to the underlying S&P/ASX 200 index
 close. The benchmark rose 0.1 percent on Monday.
    * New Zealand's benchmark NZX 50 index was flat at
5,178.8 in early trade.
    * U.S. stocks closed slightly higher on Monday, supported by
a flurry of merger news, but trading was choppy as turmoil in
Iraq drove oil prices up.
    * Rising oil and copper prices could ease some of the pain
in the local resources sector. Copper rose from last week's
one-month low on Monday as investors took heart from China's
efforts to stem any growth slowdown, and concerns over a Chinese
investigation into warehousing fraud faded.
    * Spot iron ore fell below $90 a tonne to its lowest price
since September 2012 on Monday, reflecting plentiful supply and
tighter credit that has slowed purchases by Chinese mills
despite a more than 30 percent plunge in prices this year.
    * Investors are waiting for mining contractor Mineral
Resources Ltd to announce a proposal by Wednesday to
trump a $1 billion bid for Aquila Resources Ltd from
China's Baosteel Resources and Australian rail operator Aurizon
Holdings Ltd.  
    
----------------------MARKET SNAPSHOT @ 2235 GMT ------------
                    INSTRUMENT   LAST       PCT CHG   NET CHG
S&P 500                   1937.78      0.08%     1.620
USD/JPY                   101.82      -0.01%    -0.010
10-YR US TSY YLD     2.597           --      #N/A
SPOT GOLD                 1271.64      0.03%     0.350
US CRUDE                  106.64      -0.24%    -0.260
DOW JONES                 16781.01     0.03%      5.27
ASIA ADRS                147.62       0.00%      0.00
-------------------------------------------------------------   
                                                        
        
  * Wall St ends up slightly on M&A; Iraq closely watched   
  * Brent crude climbs as Iraq conflict fuels supply worry 
  * Gold retreats from near 3-week high on profit taking  
  * Copper rises on China growth pledge                  
    
    For a digest of the day's business stories in Australian 
newspapers, double click on    
        

 (Editing by Jan Paschal)
FILED UNDER: