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Markets Live: Resources fall on oil retreat

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The Australian dollar is "vulnerable" to further losses should worsening turmoil in emerging markets turn global investors skittish on the local currency, NAB senior foreign exchange analyst Rodrigo Catril said.

The Aussie is off 3 per cent against the US dollar in 2018, last fetching US75.5¢, and is off a sharp 7 per cent from its highs of more than US81¢ in late January.

Strong economic momentum in the United States this year, coupled with slowing growth in other major economies, such as in Europe, have boosted bets of US Fed rate rises in recent months and added to the allure of the greenback.

Patrick Commins has the full story here.

Australian shares have fallen at the open this morning and are hovering just a few points above 6000.

The S&P/ASX 200 index is down 15.5 points, or 0.3 per cent, at 6017.3.

BHP Billiton and Woodside Petroleum are leading the market lower on the back of retreating oil prices.

The four major banks are also among the market's biggest drags.

Reliance Worldwide is up 21 per cent this morning while APN Outdoor is up 7.5 per cent.

Beach Energy has fallen 5 per cent.

Iron ore's extraordinary contribution to Australia's prosperity has nearly peaked with experts predicting weak growth in export volumes and market share, amid declining iron ore prices and royalty flows.

Australian miners have grown their share of Chinese iron ore imports from 43 per cent in 2010 to about 62 per cent this year on the back of massive mine expansions by BHP Billiton, Rio Tinto and Fortescue Metals Group in Western Australia.

But with those expansions approaching their conclusion, experts say further growth in export volumes and market share will be incremental at best given growing supply of iron ore out of Brazil and more moderate demand from China's steel sector.

Peter Ker has the full story here.

Here are the market highlights this morning.

SPI futures down 30 points or 0.5% to 6007

AUD -0.4% to 75.48 US cents

On Wall St: Dow -0.2%, S&P 500 -0.2%, Nasdaq +0.1%

In New York, BHP -3.7% Rio -1.1%

US markets closed Monday for Memorial Day holiday

In Europe: Stoxx 50 -0.2%, FTSE +0.2%, CAC -0.1%, DAX +0.7%

Spot gold -0.2% to $US1302.25 an ounce

Brent crude -3.2% to $US76.25 a barrel

US oil -4.5% to $US67.50 a barrel

Iron ore -3.7% to $US63.94 a tonne

Dalian iron ore -0.9% to 454 yuan

LME aluminium -0.7% to $US2263 a tonne

LME copper +0.1% to $US6885 a tonne

2-year bill yield: US 2.48%, Australia 2.00%

5-year note yield: US 2.77%, Australia 2.39%

10-year bond yield: US 2.93%, Australia 2.78%

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Wall Street's slide, a slumping oil price and geo-political problems in Europe have set up the local sharemarket for a negative start to the week, write Ilya Spivak & Tyler Yell.

ASX 200 futures are set to open Monday 28 points lower toward the 6,000 mark. Premiums may remain however, with the earnings outlook for key miners BHP Billiton and Rio Tinto supported in the long term by Chinese demand for the two firms' higher-quality ore.

Still, implied data anticipates short-term volatility, with BHP and Rio Tinto ADRs lower by 3.5% and 1.5% respectively into the weekly close on Wall Street.

Read the full 8@eight here.

Good morning and welcome to the Markets Live blog for Monday

Hope you've had a good weekend.

Your editor today is William McInnes.

This blog is not intended as investment advice.

Fairfax Media with wires.