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Stocks on Wall Street have recovered from earlier losses as US President Donald Trump announced the United States would pull out of the Iran nuclear deal, while Australian investors will be digesting the federal budget when local trade gets underway.
Markets at 7:45am (AEST):
- ASX SPI 200 futures +0.1pc, ASX 200 (Tuesday close) +0.1pc to 6,091.
- AUD: 74.51 US cents, 54.99 British pence, 62.8 Euro cents, 81.25 Japanese yen, $NZ1.07
- US: Dow Jones +0.01pc at 24,360, S&P 500 -0.03pc at 2,671, Nasdaq -0.02pc at 7,266
- Europe: FTSE -0.02pc at 7,565, DAX -0.3pc at 12,912, Euro Stoxx 50 -0.2pc at 3,557
- Commodities: Brent crude -0.2pc at $US76.05/barrel, spot gold flat at $US1,314.08/ounce
US markets climbed off the lows of the session to end mostly unchanged as oil prices clawed back from earlier, steeper falls in the wake of Mr Trump's announcement.
Iran is a major producer in the OPEC oil cartel and renewed sanctions could impact its exports, potentially driving up oil prices.
Crude oil prices were volatile in the lead-up to the announcement.
"Trump's announcement had been baked into the cake in recent days, hence we saw prices selling off today given the air of certainty surrounding it," said Matt Smith, director of commodity research at ClipperData.
However, oil pared its losses and the energy sector ended the session as the best performer on the S&P 500 index.
In Europe, the German and French markets fell, while London's FTSE was flat.
A positive start may be in store for the Australian market, with ASX SPI 200 futures higher after federal treasurer Scott Morrison handed down the budget last night.
Credit ratings agencies Moody's and S&P Global Ratings retained their AAA credit ratings for Australia.
S&P said the improvement in the budget position lessened the pressure on the credit rating but it retained its negative outlook.
"Risks to the government's plan for an earlier return to budget surpluses are significant," the agency said in a statement.
"The outlook on the long-term Australian sovereign ratings remains negative for now to reflect these uncertainties."
Meanwhile, Moody's noted a risk the expectations for commodity prices are optimistic and uncertainty over wages growth.
Topics: business-economics-and-finance, economic-trends, markets, stockmarket, budget, australia
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