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Markets Live: Miners push ASX lower

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Iron ore prices rose by 2.8 per cent on Friday as stronger steel prices drove demand for the commodity.

Iron ore prices rose by 5.5 per cent this week, rising from $US64.75 to $US68.30 per tonne.

Steel prices rose close to 2 per cent this week as demand concerns eased.

High steel rebar stockpiles had affected iron and steel prices during March but those stockpiles have continued to decline.

Iron ore futures surged on the Dalian Commodity Exchange, supported by a sharp increase in base metal futures on the London Metal Exchange earlier this week.

Shares in BHP Billiton and Rio Tinto were both down at the market open. BHP was trading down 0.6 per cent at $30.73 while Rio has fallen 0.3 per cent to $81.20.

Bank of England governor Mark Carney says that the UK should prepare for interest rate rises over the next few years.

Rates had been widely expected to rise next month although Mr Carney hinted that an increase wasn't guaranteed.

Mr Carney said policy makers would make their decision conscious of the fact that they could act later in the year, rather than right away.

Mr Carney's comments sent the pound lower as they seemed to contradict the consensus view that interest rates would be increased at the next meeting.

At the market open this morning the S&P/ASX 200 index is down 10.3 points at 5870.7.

The miners have taken a hit this morning with BHP Billiton and Rio Tinto both trading down.

Evolution Mining, Western Areas and Independence Group are the worst performers this morning, all down more than 3 per cent.

AMP has risen 2.3 per cent to $4.42 this morning and is leading the market after announcing that it was replacing its CEO.

AMP has taken drastic action following the exposure of widespread misconduct within the organisation, pushing forward the departure of its chief executive Craig Meller.

Non-executive director Mike Wilkins will replace Mr Meller in the short term until a successor is appointed.

AMP has also pledged to undertake a review of its regulatory reporting and governing practices. It will appoint "a retired judge or equivalent independent expert" to oversee the review.

The company has had more than $1 billion in market value wiped from its shares this week.

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Here are the overnight market highlights.

SPI futures down 4 points or 0.1% to 5850 at 6.10am AEST

AUD -0.7% to 77.31 US cents

On Wall St: Dow -0.3%, S&P 500 -0.6%, Nasdaq -0.8%

In New York, BHP -0.8% Rio -0.5%

In Europe: Stoxx 50 -0.1%, FTSE +0.2%, CAC +0.2%, DAX -0.2%

Spot gold -0.2% to $US1346.86 an ounce at 1.49pm New York time

Brent crude +0.4% to $US73.77 a barrel

US oil -0.2% to $US68.36 a barrel

Iron ore +3.9% to $US68.45 a tonne

Dalian iron ore +1.1% to 470.50 yuan

LME aluminium -2.1% to $US2485 a tonne

LME copper: -0.5% to $US6984 a tonne

10-year bond yield: US 2.91%; Germany 0.60%; Australia 2.78%

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The local sharemarket is poised to open lower after Wall Street slid on the back of rising pessimism, writes John Kicklighter.

US equities were already struggling to turn Tuesday's remarkable technical breakout into a convincing move yesterday.

Thursday's session cemented the burden of skepticism that continues to plague this market after its bouts of February and March volatility.

Thursday's session marked the first bearish gap for the S&P 500 and Dow in six trading days and the session ended with a modest day-over-day decline through the close.

Read more of the 8@eight here.

Good morning and welcome to the Markets Live blog for Friday.

Your editor today is William McInnes.

This blog is not intended as investment advice.

Fairfax Media with wires.