S&P/ASX 200 (INDEXASX:XJO) opened down around 1% and has been gradually creeping higher over the morning session to be down 0.48% to 6,701 at 12.44pm.
As more market participants return to their desks today, volumes and volatility are noticeably higher.
Those stocks affected by the bushfires such as insurers are being hit today while gold and oil stocks are higher on the day.
Pre-market: S&P/ASX 200 futures suggesting weaker start as US Iran tensions rise
ASX 200 futures are pointing to a weaker start this morning following sell-offs in US markets last Friday.
Selling was thought to be prompted by flaring tensions between the US and Iran after a US drone strike killed top Iranian military commander Qassem Soleimani.
They attacked us, & we hit back. If they attack again, which I would strongly advise them not to do, we will hit them harder than they have ever been hit before! https://t.co/qI5RfWsSCH— Donald J. Trump (@realDonaldTrump) January 5, 2020
Iran’s President Hassan Rouhani took to Twitter vowing revenge for the drone strike.
The flag of General Soleimani in defense of the country's territorial integrity and the fight against terrorism and extremism in the region will be raised, and the path of resistance to US excesses will continue. The great nation of Iran will take revenge for this heinous crime.— Hassan Rouhani (@HassanRouhani) January 3, 2020
The S&P 500 Index (INDEXSP:.INX) closed down 23.00 or -0.71% to 3,234.85 and the Nasdaq Composite (INDEXNASDAQ: .IXIC) closed down 71.42 or -0.79% to 9,020.77.
While US markets fell on Friday, gold and oil spiked with gold now at US$1,552 per ounce and WTI Crude Oil at US$63.03.
After rising most of last week to over 70 cents, AUDUSD has fallen to 0.6940, which will provide some support for the ASX today.
The monthly AIG Manufacturing Index was released this morning measuring 48.3, slightly higher than last month of 48.1.
Above 50.0 indicates industry expansion and below indicates contraction.
Morning Report 6 Jan 20: Wall St falls on Middle East tensions pic.twitter.com/Hwaz8f7dwb— CommSec (@CommSec) January 5, 2020