Company Interview / the open: ASX to drop amid MidEast conflict

The local market is expected to drop 20 points at the open. Global markets are on tenterhooks to start the trading week, as Israel and Iran launched fresh attacks on Sunday. 

On Wall Street, the two month rally faltered on Friday as investors sought-out safe-havens after Israel launched a military strike on Iran. Major US indexes ended down over 1% with the S&P 500 falling 1.1%. 

The oil price surged 7% on Friday night, amidst an escalation of the conflict between Israel and Iran. US Nymex crude price rose 7.3% to $US72.98 a barrel after jumping over 14% in the session. Also, the Brent oil price surged by 7% on Friday. 

The price of Gold futures settled 1.5% higher to $US3,452.80 an ounce, whilst Spot gold was trading near $US3,432 at the US close. For the week, gold jumped 3.2%, nearing another record high. US government bond yields climbed on Friday. The US 10‑year Treasury yield rose by 5 points to 4.41%. 

In terms of data today, industrial production, fixed asset investment and retail sales data are all scheduled, and locally this week, the labour force data for May will be released on Thursday.