ASX set to slip as oil prices drive markets lower; SpaceX price rumours

Oil prices are rising following the latest flare-up in fighting to threaten the US-Iran ceasefire, and US stocks are retreating from their records.

The S&P 500 fell 0.6 per cent from its all-time high. The Dow Jones was down 445 points, or 0.9 per cent, in mid-afternoon trade, and the Nasdaq composite was 1 per cent lower.

The Australian sharemarket is set to decline, with futures at 4.57am AEST pointing to a fall of 57 points, or 0.6 per cent, at the open. The ASX added 0.7 per cent on Wednesday, after a report showed the nation’s economy grew less than expected last quarter, boosting optimism for an interest rate reprieve from the Reserve Bank. The Australian dollar was trading lower at US71.30¢.

Weighing on markets was a climb of 2.1 per cent for the price of a barrel of Brent crude oil, the international standard, which brought it back to $US98.04. It rose after both the United States and Iran said they launched retaliations for earlier attacks or attempted ones.

The war with Iran has already sent oil prices and inflation higher, cranking up the pressure on the global economy. But oil prices remain below their peaks from earlier in the fighting, and hope seems to be remaining on Wall Street that the United States and Iran will ultimately agree to reopen the Strait of Hormuz to oil tankers. That would improve the global flow of crude and hopefully lower its price.

Such hopes, along with strong profit reports from US companies, have helped launch the US stock market on a tremendous rally. If the S&P 500 can turn around and finish the day with a gain, it would be the 10th straight for the index, which would be its longest such streak in three decades.

Medtronic climbed 5.1 per cent after reporting a stronger profit for the latest quarter than analysts expected. It also increased its dividend payout going to investors.

GameStop jumped 6.3 per cent after the video-game retailer said its revenue in the latest quarter grew 14 per cent from a year earlier. It also announced a program to send up to $US2 billion ($2.8 billion) to its investors by buying back its own stock.

Macy’s swung between gains and losses and was most recently down 0.9 per cent after the iconic New York department store reported profit for the latest quarter that blew past analysts’ forecasts. The retailer said an overhaul of its merchandise and better customer service is resonating with customers.

Meanwhile, Elon Musk’s SpaceX plans to price its IPO at $US135 a share, ahead of a roadshow, to raise a record $US75 billion, a source familiar with the matter told Reuters on Tuesday.