Welcome to Wednesday. Here are the five things I'm looking at today on the Australian sharemarket.
- The S&P/ ASX 200 (Index: ^AXJO) (ASX: XJO) has opened 0.7% lower.Overnight, the Dow Jones fell 0.7%, the broader S&P 500 lost 0.9%, while the NASDAQ dropped 1.3%.It was the fifth consecutive day of falls, driven by falling oil prices and economic data showed that growth in the US service sector had slowed somewhat. Oil prices have now dropped close to 10% in 2 days to the lowest prices since 2009, and 55% since June 2014.
- Continuing that theme, ratings agency Moody's is tipping a tough year for oil players, particularly smaller explorers and the energy services companies, as the sector imposes widespread cost cutting, job losses and mergers.For those mining services companies like Monadelphous Group Limited (ASX: MND), which had been hit hard by falling mineral resource investment and pinned their hopes on the energy sector, its nothing but bad news. You can add WorleyParsons Limited (ASX: WOR) to that list as well.
- Have retailers had a great festive season?Some analysts seem to think so. Media reports suggest discounted prices added $800 million in sales over Christmas, following slower-than-expected sales in the week leading up to Christmas. Australia Post boss Ahmed Fahour noted that consumer sentiment was 'lukewarm', while clothing retailer Kathmandu Holdings Ltd (ASX: KMD) saw its shares smashed just two days before Christmas, after warning of subdued sales.We may have to wait a few weeks before retailers begin updating the market to find out whether consumers opened their pockets.
- Tweet of the Day
Australia hasn't had a recession since this guy was at number 1. "Will it ever stop? Yo! I don't know!" pic.twitter.com/fuwtEyAssh
TMFMattJoass (@TMFMattJoass) January 6, 2015That's American rapper Vanilla Ice, in case you were wondering, and the last recession was in 1991.
- Stock of the Day – brought to you by Andrew Mudie – Ensogo Ltd (ASX: E88). Previously known as iBuy, Ensogo could be the sleeper stock of 2015 according to Andrew. You can read more here.
