Oil price rises on Saudi surprise cut: ASX poised to open lower

The Australian share market looks set to open lower this morning. Gold stocks had been pushing the market up. The price of oil surged after a surprise move by Saudi Arabia to cut one million barrels a day of crude production starting next month. The Australian dollar has risen to over $0.77US cents after iron ore prices rose thanks to a demand from China.


Wall Street closed higher yesterday: The Dow Jones Industrial Average rose 0.6 per cent to 30,392, the S&P 500 closed 0.7 per cent higher to 3,727 and the NASDAQ closed 0.95 per cent higher at 12,819.

European markets closed mixed, London’s FTSE gained 0.6 per cent, Paris lost 0.4 per cent and Frankfurt closed 0.6 per cent lower.

Asian markets closed mixed, Tokyo’s Nikkei lost 0.4 per cent, Hong Kong’s Hang Seng gained 0.6 per cent and China’s Shanghai Composite closed 0.7 per cent higher.

Taking all of this into equation, the SPI futures are pointing to a 7 point fall.

Yesterday, the Australian share market closed 0.04 per cent lower or 2 points lower at 6,682.

Company news

Si6 Metals (ASX:Si6) reports significant anomalies at the Maibele project in Botswana. The Company continues to target additional nickel, copper, cobalt, PGE and silver mineralisation at the project. The program has made steady progress, with results from geophysical surveying now available and diamond drilling progressing to over 320m depth. Shares in Si6 Metals (ASX:Si6) closed flat at $0.04.


Pengana International Equities (ASX:PIA) is paying 1.25 cents fully franked.
Premier Investments (ASX:PMV) paying 36 cents fully franked.


One Australian Dollar at 8:30 AM was buying 77.64 US cents, 57.00 Pence Sterling, 79.78 Yen and 63.18 Euro cents.


Iron Ore futures are flat
Gold has lost $2.50 to US$1,952 an ounce.
Silver was up $0.09 to US$27.72 an ounce.
Oil was up $0.03 to US$49.96 a barrel.
Iron Ore futures suggest a 3.8 per cent rise.