The ASX is forecast to open lower today, following a decline on Wall Street and a surge in oil prices as the Middle East crisis continues to simmer, with Brent crude back above US$93 a barrel and edging towards the US$100 mark.

Overnight in New York, rising oil prices and climbing treasury yields pushed the major US indexes to two-week lows. The Dow Jones Industrial Average fell 1.31 per cent to close at 52,759, the S&P 500 dropped 66.82 points to finish at 7,642, and the Nasdaq slid one per cent to settle at 26,067.

In energy markets, Brent crude reached its highest level in almost a month as the United States stepped up economic pressure on Iran. Crude at these levels keeps energy costs in the spotlight for households and businesses, and is closely watched by ASX-listed energy producers, for whom the oil price is a key revenue driver.

On the domestic data front, the seasonally adjusted unemployment rate rose to 4.5 per cent in July, according to the latest figures from the Australian Bureau of Statistics (ABS). The bulk of the decline in employment came among males, down 11,000 people, while female employment recorded a smaller fall of 5,000 — a combined drop of 16,000. The labour market is among the indicators the Reserve Bank of Australia monitors closely in setting the cash rate, with full employment one of its legislated objectives alongside price stability.

Stocks in the news

• Regis Resources (ASX: RRL), a Western Australian gold producer, generated a record net profit after tax of $715 million, a record EBITDA of $1.345 billion and record statutory operating cash flows of $1.247 billion — results posted with gold trading above US$4,500 an ounce.
• MGX Resources (ASX: MGX) maintained a strong balance sheet to underpin its pivot to the Central Tanami gold project in the Northern Territory.
• James Hardie (ASX: JHX), the building products manufacturer, announced the divestiture of its European operations.
• Terrain Minerals (ASX: TMN), a gold explorer, unveiled seven new priority gold targets at Smokebush.
• Perenti (ASX: PRN), the mining services contractor, agreed to divest BTP Group for $100 million.

Buck and ore

In currency markets, the Australian dollar is buying US$0.710.

Across commodities, all quoted in US dollars:

• Iron ore is down 0.01 per cent to $95.16 a tonne in Singapore.
• Brent crude is up 1.54 per cent to $93.034 per barrel.
• Gold is selling at $4,519.45 an ounce.
• US natural gas futures are down 1.92 per cent to $2.7591 per gigajoule.

With the Middle East situation still developing, further headlines from the region and the direction of oil will remain in focus as the local session gets under way.

That concludes HotCopper's Market Open, by Colin Sandell-Hay.

The material provided in this article is for information only and should not be treated as investment advice. Readers are encouraged to conduct their own research and consult a certified financial advisor before making any investment decisions.