Originally published by Rivkin Securities
The Australian market will make a tentative start late today after Friday’s less than inspiring end to the week. Eurozone shares fell 0.5% on Friday and the US S&P 500 lost 0.3% as geopolitical concerns and rising bond yields continue to surprise and worry US investors.
Oil prices rose but gold sold off sharply (the biggest weekly fall in seven months or so), while copper and iron ore prices fell slightly. A further rise in the US dollar weighed on the Australian dollar, which ended just above 75 US cents.
Oil's run has been extraordinary, with Brent having now risen for six weeks in a row, the longest such run since March 2011. In New York on June West Texas Intermediate (WTI) crude fell 21 cents, or 0.3%, to end at $US71.28 a barrel, after settling at a 3½-year high over the past two sessions. The timing has been timely for Santos (AX:STO), which has today announced a further increase to the proposed offer from would-be acquirer Harbour Energy.