The Australian share market is posting modest gains ahead of this afternoon’s Reserve Bank decision.
The market has priced in an 80 per cent chance of the RBA cutting interest rates by 25 basis points to stimulate the flagging domestic economy — down to a fresh record low of 0.75 per cent.
Meanwhile, the Australian dollar has fallen to 67.34 US cents.
By 12:35pm (AEST), the ASX 200 was up 0.4 per cent to 6,713 points.
Market snapshot at 7:45am (AEST):ASX SPI futures +0.1pc at 6,687, ASX 200 (Monday’s close) -0.4pc at 6,688AUD: 67.49 US cents, 54.9 British pence, 61.9 euro cents, 72.94 Japanese yen, $NZ1.08US: Dow Jones +0.4pc at 26,917, S&P 500 +0.5pc at 2,977, Nasdaq +0.75pc at 7,999Europe: FTSE 100 -0.2pc at 7,408, DAX +0.4pc at 12,428, CAC +0.7pc at 5,678, Euro Stoxx 50 +0.7pc at 3,569Commodities: Brent crude -1.9pc at $US60.75/barrel, spot gold -1.6pc at $US1,472/ounce, iron ore +2.8pc at $US93.38/tonne
Energy and gold mining companies are dominating the list of worst performing stocks, following an overnight drop in oil and gold prices.
Oil prices slipped as the US-China trade war continued to weigh on the economic growth outlook for China, the world’s largest crude importer.
Brent crude dropped 1.9 per cent to $US60.75 a barrel, while spot gold fell 1.6 per cent to $US1,472 an ounce.
Market downplays Trump’s threats
Wall Street finished trading with solid gains driven by technology stocks, despite reports that Washington was considering escalating its trade war with Beijing by delisting Chinese companies from US stock exchanges.
US President Donald Trump is looking at the move as part of a broader effort to limit US investment in Chinese companies, though it was not clear how any such delisting would work.
White House trade adviser Peter Navarro dismissed