ASX Set for Flat Open After Wall Street Slips, Oil Jumps

The S&P/ASX 200 is expected to open flat to slightly lower on Tuesday, tracking a subdued finish on Wall Street where the Dow fell 0.9% and the S&P 500 lost 0.2%. The Nasdaq eased 0.1%.

Wall Street closed lower after oil prices jumped. Brent crude rose 5.16% to $83.55 a barrel. The move followed a Reuters report that a potential Iran-Oman deal could give Tehran control over ships entering the Gulf through the Strait of Hormuz, escalating geopolitical risk.

Shares in Western Digital and Sandisk fell. Sandisk's forward guidance came in below analyst estimates, weighing on the sector. Western Digital, which carries an Alpha Score of 66 (Moderate) on AlphaScala, declined in sympathy. WDC stock page.

Locally, the Reserve Bank is expected to leave its cash rate unchanged when it meets next Tuesday. The ABC reported that leading economists widely expect a hold, citing still-elevated inflation and a tight labour market.

The Minerals Council of Australia warned that a federal government move to deprioritise offshore skilled migration visa applicants will hurt mining and other sectors. CEO Tania Constable said skilled migrants fill urgent workforce gaps.

She added that the industry provides more than 290,000 direct jobs and supports around 1.25 million jobs across the country, with projections for 35,400 more by 2028.

The Australian dollar was buying US$0.7033. Iron ore rose 1.89% to $96.20 a tonne. Brent crude jumped 5.16% to $83.55 a barrel. US natural gas futures fell 2.05% to $2.633 per MMBtu.

In ASX small-cap news, Maritana Minerals (ASX:MRT) is drilling at the Wilsons gold prospect in Western Australia. Elevra Lithium (ASX:ELV) completed the sale of certain pegmatite rights. Resmed (ASX:RMD) posted a record fourth quarter. Aurum Resources (ASX:AUE) hit a bonanza gold section at Boundiali. Tivan (ASX:TVM) agreed to a project finance mandate for Speewah.

The RBA board meets next Tuesday. The cash rate decision is due at 2:30 p.m. AEST.