Markets Live: ASX lifts on banks, miners

It's been a "perfect storm" sort of week for the local currency: RBA governor Philip Lowe said an increase in official rates "still looks to be some time way"; the US Federal Reserve lifted rates for a second time this year and indicated it's leaning toward two more hikes in 2018 - one more than policymakers previously signalled; and, the May labour force data somewhat disappointed.

Timothy Moore has the full story here.

Approval of South Flank comes barely three weeks after rival iron ore exporter Fortescue Metals Group announced the $US1.27 billion development of the new Eliwana mine in the Pilbara, and as Rio Tinto prepares to update investors next week on the approval schedule for the $US2 billion plus Koodaideri iron ore project.

Peter Ker has the full story here.

Almost all the index heavyweights are trading higher today and the five worst stocks are only wiping 1 point from the index combined.

Westpac and CSL are leading the index with 1 per cent gains while Telstra has recorded a second day of solid growth.

Iluka Resources has risen 2.4 per cent while Nanosonics has risen 2.3 per cent.

Qantas Airways is the index's biggest laggard this morning, down 0.8 per cent and wiping just 0.3 points from the index.

Alumina stocks have fallen 1.1 per cent while Primary Health Care is the index's worst performer, down 1.7 per cent.

The overweight financials sector led the way downward, shedding 0.55 percent. Commonwealth Bank shares sank to the lowest level in almost five years.

A disappointing local jobs report and Chinese data pointing to softening economic activity in Australia's top export market compounded downward pressure.

SPI futures are pointing higher ahead of the opening bell in Sydney, hinting that a cautiously positive lead from Wall Street might carry through in to the week's final session.

Trade war jitters might derail momentum however as China prepares to unveil countermeasures aimed at responding to new US tariffs, stoking concerns about a deepening spat between the world's top-two economies that disrupts supply chains vital to Australian business.

Read the full 8@eight here.

AUD -1.2% to 74.84 US cents

On Wall St: Dow -0.1% S&P 500 +0.3% Nasdaq +0.9%

In New York, BHP -0.7% Rio -0.4%

In Europe: Stoxx 50 +1.4% FTSE +0.8% CAC +1.4% DAX +1.7%

Spot gold +0.2% to $US1302.46 an ounce at 2.47pm New York time

Brent crude -1% to $US75.94 a barrel

US oil +0.4% to $US66.93 a barrel

Iron ore to +2.2% $US68.49 a tonne

Dalian iron ore -0.1% to 472 yuan

LME aluminium -0.8% to $US2256 a tonne

LME copper -1.1% to $US7177 a tonne

2-year yield, at 4.31pm New York: US 2.57% Australia 2.03%

5-year yield: US 2.81% Australia 2.35%

10-year yield: US 2.93% Australia 2.72% Germany 0.42%