The Australian share market looks set to open lower after news that former US security adviser Michael Flynn said he was willing to testify against President Trump over Russia’s involvement in the US presidential election.
At 0700 AEDT on Monday, the share price futures index was down six points, or 0.1 per cent, at 5,991.
Former US national security adviser Michael Flynn pleaded guilty to lying to the FBI about his contacts with Russia and agreed to co-operate with prosecutors delving into the actions of US President Donald Trump’s inner circle before he took office.
The news hit key international markets with most closing lower, including Wall Street where expectations the Republican’s tax reform package would pass the Senate helped cushion the impact.
The Dow Jones Industrial Average fell 0.17 per cent, the S&P 500 lost 0.20 per cent and the Nasdaq Composite dropped 0.38 per cent.
Locally, in economic news on Monday, the Australian Bureau of Statistics releases its business indicators for the September quarter, CoreLogic releases its capital city house prices survey for the week just ended and the ANZ job advertisements series for November is expected to be released.
In equities news is, Metcash is expected to release half-year results.
The Australian market on Friday closed higher, led by the healthcare and energy sectors, while the under- pressure banks faded after an early rally as the looming royal commission weighs on the financial sector.
The benchmark S&P/ASX200 index rose 19.9 points, or 0.33 per cent, to 5,989.8
The broader All Ordinaries index gained 18.3 points, or 0.3 per cent, to 6,075.5 points.
Meanwhile, the Australian dollar has slipped just under 76 US – after sporadically rising above the key level earlier in the morning – but it still higher against its US counterpart.
The local currency was trading at 75.98 US cents at 0700 AEDT on Monday, from 75.64 on Friday.
CURRENCY SNAPSHOT AT 0700 AEDT:
One Australian dollar buys:
* 75.98 US cents, from 75.64 on Friday
* 85.73 Japanese yen, from 85.14 yen
* 64.03 euro cents, from 63.42 euro cents
* 56.49 British pence, from 55.91 pence
* 110.56 NZ cents, from 110.80 cents
The spot price of gold in Sydney at 0700 AEDT was $US1,279.93 per fine ounce, from $US1,275.07 per fine ounce on Friday.
BOND SNAPSHOT AT 0700 AEDT:
* CGS 4.50 per cent April 2020, 1.8407pct, unchanged
* CGS 4.75pct April 2027, 2.4911pct, unchanged
Sydney Futures Exchange prices:
* December 2017 10-year bond futures contract at 97.480 (implying a yield of 2.520pct), from 97.450 (implying a yield of 2.550pct) on Friday
* December 2017 3-year bond futures contract at 98.07 (1.93pct), from 98.05 (1.95pct).
(*Bond market closes taken at 1630 AEDT previous local session; currency closes taken from 1700 AEDT previous local session)