Company Interview / the open: Oil and precious metals surge, ASX to slip

Global markets have responded to the outbreak of war in the Middle East as the conflict enters its fourth day. The local market is set to extend its losses this morning with ASX futures down 0.23%. 

On Wall Street stocks rebounded after losses in the morning. The main indices were boosted by the defence and energy sectors while travel and interest rate‑sensitive stocks came under pressure. 

The US military says it has hit more than 1,250 targets in Iran since operations started on Saturday and has destroyed 11 Iranian ships. US President Trump has said the war could continue for some weeks. 

The conflict in the Middle East has widened with Israel attacking Lebanon in response to strikes by Hezbollah, while Iran has continued to launch air strikes on Gulf states. Oil and gas prices surged, along with precious metals, while equity markets fell with European stocks suffering their biggest one-day decline in three months. 

The US dollar index is up 0.9% on the day, meanwhile the Australian dollar is trading at US70.9 cents.