ASX to rise, European stocks rebound, bitcoin bounces

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Australian shares are poised to open higher, taking direction from a recovery in European markets. Lowe will speak at 10am AEST.

Australian shares are set to snap their losing streak. Shares rallied in Europe, though BHP and Rio slid in London after iron ore’s drop. US markets were closed for a holiday.The local currency edged higher, while the Bloomberg dollar spot index edged lower.Local: RBA review of yield target at 8am AEST; Speech by Philip Lowe, governor – Inflation and Monetary Policy – in Sydney at 10am AEST; Minutes from the June board meeting at 11.30am AESTMarket highlightsBitcoin +4.4% to $US20,306.45 at 3.

France’s blue-chip CAC 40 rose 0.6 per cent, the least among major regional indexes, after Macron’s centrist Ensemble coalition secured the most seats in the National Assembly over the weekend but fell well short of securing an absolute majority needed to control parliament.Dalian iron ore futures slumped by their 11 per cent limit on Monday, while those in Singapore dropped as much as 8 per cent, as fears grew about a collapse of steel consumption in China.

The most-traded iron ore, for September delivery, on China’s Dalian Commodity Exchange ended daytime trade 11 per cent lower at 746 yuan a tonne, its lowest since March 16. “Heavily subdued, COVID-afflicted domestic steel consumption” continued to weigh on China’s ferrous complex, said Atilla Widnell, managing director at Navigate Commodities in Singapore.

 

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