ASX set to slide as oil prices rise; $A stronger

European stocks were weighed down by higher oil prices and a drop in Novartis following the failure of a heart drug, while Wall Street was closed for the Labor Day holiday. The Stoxx Europe 600 Index was little changed at the close in London. Energy stocks outperformed, buoyed by higher commodity prices after the US and Iran traded strikes on tankers, while the media and insurance sectors were among the biggest laggards. US stock futures fell in cautious trading. S&P 500 futures dropped 0.2 per cent while Nasdaq 100 contracts gained. The ASX is set for a muted open this morning. Oscar Colman The Australian sharemarket is set to retreat, with futures at 4.51am AEST pointing to a fall of 7 points, or 0.1 per cent, at the open. The ASX edged 0.1 per cent higher on Monday. The Australian dollar was trading higher at US72.18¢. Novartis shares fell 3.2 per cent, the most they have retreated, since April on news that pelacarsen, a potential blockbuster cholesterol drug, failed in a final-stage study. Semiconductor supplier SOITEC rose 12 per cent, outperforming peers in a strong day of trading for AI-adjacent names including Infineon Technologies, which gained 6.9 per cent after an upgrade at MP Capital Markets.