SYDNEY FINANCIAL FUTURES OPEN MIXED
A sharp overnight fall on Wall Street due
to profit taking and arbitrage related selling and a subsequent
local share market slump led to a steep drop in most share
price index contracts, dealers said.
    They said domestic credit futures were higher, however, in
response to lower yields in short term money markets as the
Australian dollar firmed and cash weakened.
    Comex-linked gold futures were higher as a result of rises
in bullion. International credit futures were steady in
extremely thin trade.
    June share price index futures opened lower at 1,730.0
against yesterday's 1,735.5 close in moderate trade. September
was slightly higher at 1,741.0 against 1,737.0 in thin trade.
About 950 lots changed hands.
    Dealers said the market, which seemed to lose its momentum
late yesterday, reacted badly to the 45 point drop in the Dow
Jones index. The all ordinaries index dropped 10.3 points to
1,743.7 at mid-morning with losses across the board.
    June 90 day bank bills rose to 85.23 from yesterday's 85.16
close. September rose to 85.32 from 85.25. About 3,054
contracts were traded.
    Physical yields eased to 15.40 pct from 15.50.
    June 10-year bond futures, the only month to trade, were
higher at 86.92 against yesterday's 86.87 finish. About 5,433
lots were exchanged.
    March 1997 paper was 13.09 pct, down from 13.11.
   June Comex-linked gold futures started strongly at 427.50
U.S. Dlrs an ounce, up from 426.20 in New York and yesterday's
close of 425.00. Only two lots were traded.
    June U.S. T-bonds started at 97.02, down from a Chicago
finish of 97.08 and a close of 97.27, with 20 lots traded. June
Eurodollars were steady with only five lots exchanged.
 REUTER
