The Australian share market looks set to open higher despite falls in commodity prices and global equity markets tumbling amid escalating trade tensions between China and the US.
At 0700 AEST on Wednesday, the share price futures index was up 36 points, or 0.59 per cent, at 6,142.
Stocks tumbled close to four per cent in China, heading for three per cent in Hong Kong and nearing two per cent in Japan as US president Donald Trump threatened to impose a 10 per cent tariff on another $US200 billion ($A271 billion) of Chinese goods, and Beijing warned it would retaliate.
Europe and Wall Street, while faring better, also fell with the Dow Jones Industrial Average closing back in negative territory for the year.
The Dow Jones Industrial Average fell 1.15 per cent, to 24,700.21, the S&P 500 lost 0.40 per cent, to 2,762.57 and the Nasdaq Composite dropped 0.28 per cent, to 7,725.59.
The price of iron ore has dropped more than $US2, copper is almost two per cent lower while oil prices are also down with WTI more than one per cent poorer and Brent crude losing nearly half a per cent.
Locally, in economic news on Wednesday, Reserve Bank of Australia governor Philip Lowe is slated to participate in a panel discussion at the European Central Bank’s Forum on Central Banking in Portugal.
In equities news, Austrac’s $700 million penalty against Commonwealth Bank is expected to be approved by the Federal Court.
Meanwhile, Telstra has a strategy update slated.
The Australian share market on Tuesday edged lower as the mining heavyweights were hit by falls in iron ore prices, while the Australian dollar hit a one-year low.
The benchmark S&P/ASX200 index was down 2 points, or 0.03 per cent, at 6,102.1 points, while the broader All Ordinaries index was down 3.9 points, or 0.06 per cent, at 6,208.9 points.
Meanwhile, the Australian dollar has sneaked a little higher against its major currency peers, including the greenback.
The local currency was trading at 73.83 US cents at 0700 AEST on Wednesday, from 73.65 on Tuesday.
CURRENCY SNAPSHOT AT 0700 AEST:
One Australian dollar buys:
* 73.83 US cents, from 73.65 on Tuesday
* 81.22 Japanese yen, from 80.77 yen
* 63.70 euro cents, from 63.58 euro cents
* 56.03 British pence, from 55.74 pence
* 106.95 NZ cents, from 106.88 cents
The spot price of gold in Sydney at 0700 AEST was $US1,274.43 per fine ounce, from $US1,280.02 per fine ounce on Tuesday.
BOND SNAPSHOT AT 0700 AEST:
* CGS 4.50 per cent May 2021, 2.0751pct, unchanged
* CGS 4.75pct May 2028, 2.6237pct, unchanged
Sydney Futures Exchange prices:
* September 2018 10-year bond futures contract at 97.340 (implying a yield of 2.660pct), from 97.365 (implying a yield of 2.635pct) on Tuesday
* September 2018 3-year bond futures contract at 97.870 (2.130pct), from 97.895 (2.105pct).
(*Bond market closes taken at 1630 AEST previous local session; currency closes taken from 1700 AEST previous local session)