Welcome to Tuesday. 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 flat, despite decent gains on offshore markets overnight.US markets were mostly higher, with the Dow Jones flat, the broader S&P 500 gaining 0.3% and the tech-heavy NASDAQ also adding 0.3%%.The Australian dollar continues to fall, currently buying 79.1 US cents.
- Iron ore stocks have been hammered in early trading, after the commodity price crashed to SU$63.54 per tonne. Arrium Limited (ASX: ARI) has seen its share price tumble 10%, while Fortescue Metals Group Limited (ASX: FMG), BC Iron Limited (ASX: BCI) and Rio Tinto Limited (ASX: RIO) have fallen 8.5%, 6.6% and 2.7% respectively.Goldman Sachs says a return to a bull market is "probably more than a decade away".Ouch…
- Another commodity with a negative view is oil. Media reports suggest many hedge funds are predicting further falls to come, with short positions in WTI Crude Oil at their highest levels since September 2010. The US is expected to pump the most oil since 1972 this year, according to the Energy Information Administration.It seems oil could be headed the same way as iron ore – more details in the Tweet below…
- Tweet of the Day
With the US set to pump the most oil since 1972 this year, hedge funds boost bearish oil wagers to a 4-year high https://t.co/meAzkXkzxf
Financial Review (@FinancialReview) January 26, 2015
More falls ahead for oil? Some people are banking on it. - Stock of the Day– brought to you by Sean O'Neill – Santos Ltd (ASX: STO). Sean takes a look at the oil and gas producer's latest quarterly results and why he thinks it could be a long term buy.
