Company Interview / the open: ASX to fall, US-Iran in focus

The local market is set to open lower with ASX futures down around 0.25%, as the world braces for Iran’s response after the US attacked key Iranian nuclear sites over the weekend. 

Global equity markets were mixed on Friday ahead of the US attack on Iran. The S&P 500 and Nasdaq ended lower on Friday, while for the week, the Dow was little changed and the S&P 500 was down 0.2%.  

The US attack on Iranian nuclear sites is expected to push oil prices higher and prompt a flight to safety as markets assess how the rapidly escalating war in Iran would affect the global economy. The reaction in Middle East stock markets, which traded on Sunday, suggested investors were assuming a benign outcome, even as Iran said it reserves all options to defend itself, and warned of "everlasting consequences.” 

Ahead of US military action, Brent crude futures fell 2.3% to $77 on Friday, and copper fell 0.4%. Meanwhile, iron ore rose 1% to $93 a tonne and gold increased around 0.5% to $3382 an ounce. The Australian dollar fell slightly to US64.3c and risk off sentiment has seen Bitcoin take a tumble, falling below $100,000. 

Looking ahead locally, global PMIs for services and manufacturing will be released today. Wednesday sees the monthly read on inflation and the national accounts are revealed on Thursday along with job vacancies for May.