The Australian market is set to open flat
The Australian market looks set to open flat after Wall Street closed positive but European and Asian markets ended sharply down amid rising tension between the US and North Korea and with US inflation data disappointing.
At 0700 AEST on Monday, the share price futures index was down three points, or 0.05 per cent, at 5,638.
In the US, the three major US stocks indices snapped three days of losses, as investors bet on slower US rate rises after disappointing inflation figures, but gains were muted by increasingly aggressive exchanges between the United States and North Korea.
The US July consumer price index (CPI) disappointed for the fifth consecutive month, with its core measure at 0.1 per cent, versus an expected 0.2 per cent, leaving the annual rate at 1.7 per cent, against the expected 1.8 per cent.
The Dow Jones Industrial Average rose 0.07 per cent, the S&P 500 gained 0.13 per cent, while the Nasdaq Composite added 0.64 per cent.
Locally, in economic news on Monday, Reserve Bank of Australia Assistant Governor (Financial Markets) Chris Kent is slated to deliver a speech at the Moody's Analytics Forum in Sydney.
The CoreLogic capital city house prices survey for the week just ended is due out.
In equities, Bendigo and Adelaide Bank, Aurizon, Newcrest Mining, JB Hi-Fi and Ansell are slated to post full-year results, while Ooh Media! is schedlued to release half-year results.
The Australian market on Friday closed lower, with increasing tension between the US and North Korea sparking a widespread sell-off that wiped almost $23 billion from the Australian share market.
The benchmark S&P/ASX200 index was down 67.8 points, or 1.18 per cent, at 5,693.1 points.
The broader All Ordinaries index was down 67.1 points, or 1.15 per cent, at 5,743.5 points..
Meanwhile, the Australian dollar is higher against the US dollar which has been pulled down by the worse-than-expected US CPI data.
The local currency was trading at 78.93 US cents at 0700 AEST on Monday, from 78.58 on Friday.
CURRENCY SNAPSHOT AT 0700 AEST:
One Australian dollar buys:
* 78.93 US cents, from 78.58 on Friday
* 86.165 Japanese yen, from 85.7885yen
* 66.77 euro cents, from 66.84 euro cents
* 60.71 British pence, from 60.54 pence
* 108.00 NZ cents, from 107.88 cents
The spot price of gold in Sydney at 0700 AEST was $US1,290.70 per fine ounce, from $US1,285.47 per fine ounce on Friday.
BOND SNAPSHOT AT 0700 AEST:
* CGS 4.50 per cent April 2020, 1.8301pct, unchanged
* CGS 4.75pct April 2027, 2.5354pct, unchanged
Sydney Futures Exchange prices:
* August 2017 10-year bond futures contract at 97.400 (implying a yield of 2.600pct), from 97.415 (2.585pct) on Friday
* August 2017 3-year bond futures contract at 98.07 (1.93pct), from 98.08 (1.92pct).
(*Bond market closes taken at 1630 AEST previous local session)
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