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Australia shares to open near 2 1/2-year lows

Published 15/12/2015, 08:47 am
© Reuters.  Australia shares to open near 2 1/2-year lows
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SYDNEY, Dec 15 (Reuters) - Australian shares are at risk of erasing all the year's gains on Tuesday and reach lows not seen since mid-2013 as commodity prices remain under pressure.

Wall Street did find some support overnight with the S&P 500 .SPX recouping early losses to edge up 0.4 percent. .N U.S. crude prices neared 11-year lows at one stage before bouncing CLc1 , while iron ore managed a minor gain.

Local share price index futures YAPcm1 were a shade lower at 4920, an eight-point discount to the underlying S&P/ASX 200 index .AXJO close. The benchmark slid 2.01 percent on Monday, or 100.85 points, to finish at 4,928.60.

A break under the September 2015 low of 4,918.40 would take the market to ground last trod in July 2013.

New Zealand's benchmark NZX 50 index .NZ50 was a fraction firmer in early trade.

Qantas Group QAN.AX upgraded its profit outlook to a range of A$875 million to A$925 million for the first six months of financial year 2016.

Later in the session, Australia's Liberal National government will release its latest budget update, which is likely see upward revisions to deficits as falling commodity prices eat into revenues.

Minutes of the Reserve Bank of Australia's (RBA) December policy meeting are also released but should merely reaffirm the outlook for steady interest rates in the near term.

For a summary of overnight action across global markets, double click on AU/CALL

For a digest of the day's business stories in Australian newspapers, double click on PRESS/AUB .

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