Australian share prices are expected to fall on Monday despite a rise in United States stocks on Friday.
The ASX 200 index is likely to droop 0.7% when the market opens at 10:00 am AEST (12:00 am GMT), according to futures trading on the Australian Securities Exchange (ASX).
The June share price index contract was quoted 58 points below the prior settlement at 8,627 points at the time of settlement at 6:00 am AEST on Saturday, which was before news of a potential settlement of the conflict between the U.S. and Iran.
U.S. President Donald Trump posted on Truth Social on Sunday: “An agreement has been largely negotiated, subject to finalisation between the United States of America, the Islamic Republic of Iran, and the various other countries.”
U.S. stocks had finished up on Friday (Saturday AEST) with the Dow Jones Industrial Average ending at a new closing peak in response to news of progress in the peace talks, along with positive company results.
Secretary of State Marco Rubio said on Friday the U.S. had made progress in talks with Iran, but work remained, although a spokesman for Iran’s foreign ministry said the differences between the sides remained deep.
The Dow climbed or 0.6%, the S&P 500 added 0.4%, and the Nasdaq Composite put on 0.2% on Friday.
"Earnings season looked really good and the economic data, save a few outliers, looked pretty solid so fundamentally the picture looks really solid," Ocean Park Asset Management chief investment officer James St. Aubin was quoted as saying in a Reuters article.
"The war has been one major speed bump along the road for at least the equity market but I think the headlines today looked encouraging and that was probably helping at the margin."
The Australian sharemarket had ended firmer on Friday with the ASX 200 Index climbing 0.4% 8,657.0 points.
News today includes earnings from Fisher and Paykel Healthcare (ASX: FPH) while Aristocrat Leisure (ASX: ALL) trades ex-dividend.
On the bond markets, yields on Australian Government paper fell with two-year rates down by 0.89% to 4.582% and 10-year rates 0.49% off at 4.589% at the time of writing.
