The Australian equity market is set for a weak start to the week aft US stocks snapped their 3 day winning streak. US markets fell heavily in the final hours of trade as investors cautiously waited for further developments in the Euro zone.
The Dow dropped 179.79 points or 1.6% to close just above 110000 at 11010.90. Leading into the final hour of trade, the Dow fell around 160 points as copper prices slid, dragging down material stocks. The fall in copper prices are being reflected across the whole commodity complex as energy, base metals and precious metals have all had major falls from their recent highs.
The EURUSD traded mostly lower against the dollar as hopes for a comprehensive deal for Greece fade. The euro had climbed to a one-week high earlier in the day ahead of a key vote by Finland's parliament to approve expanded powers for the European Financial Stability Facility, the euro zone's rescue fund. But while Finnish lawmakers approved the changes to the EFSF, the euro quickly began to fade midday as investors looked to even higher hurdles awaiting the debt-plagued region.
The AUDUSD has traded down over 1% and the fall in commodity prices play a key role in our economy. The AUDUSD fell as low as 0.9780 overnight, however has opened up this morning lower.
Gold and silver futures turned sharply lower in the final hour of U.S. trading as fears about the euro zone's financial future overwhelmed hopes of progress in resolving the region's debt crisis. WTI oil traded down reflecting the fall in the stock market, futures fell 3.8% on the ongoing issues in Europe.
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