Welcome to Thursday. Here are the five things I'm looking at today on the Australian sharemarket.
- The S&P/ ASX 200 (Index: ^AXJO) (ASX: XJO) has tumbled 1.2% lower at the open as Wall Street fell again overnight.In the US, the Dow Jones dropped 0.5% and the broader S&P 500 lost 0.45% while the tech-heavy NASDAQ tumbled 0.4%.
Oil prices were mixed, with Brent Crude Oil gaining 0.4% to US$67.77 per barrel while WTI Crude fell 0.4% to US$60.67 per barrel. (WTI stands for West Texas Intermediate and is the benchmark oil price in the US while the Brent crude oil price is more widely used in Europe.)
Iron ore prices were up 2%, and last traded at US$58.70 per tonne.
The Australian dollar has soared against the US dollar and is currently buying 79.6 US cents.
- The spot iron ore price has jumped above US$60 per tonne overnight rising 3.7%, which could see Australia's iron ore miners surge higher today – unless the general malaise doesn't weigh upon them as well.Some of the junior miners still have the problem that even at current prices they are unprofitable. And the long-term outlook for the commodity is for lower prices.
- National Australia Bank (ASX: NAB) is raising $5.5 billion in capital and plans to demerge its struggling UK business. The big four bank today reported an interim cash profit of $3.3 billion, up 5.4% over the previous year, and a fully franked 99 cent dividend – the same as last year.NAB plans to spin off 70-80% of Clydesdale Bank to NAB shareholders and offer the remaining 20-30% to the public in an IPO. Yorkshire Bank is a trading name of Clydesdale Bank, so will be included in the spin-off.
Westpac Banking Corp (ASX: WBC) is raising $2 billion in extra equity, but most investors don't even realise it. By partly underwriting its dividend reinvestment plan, the big bank will see its coffers swell, rather than having to pay out dividends in cash.
If you own bank shares, you need to read this -> What Every Bank Shareholder Must Know
- Tweet of the Day
What Vocus CEO thinks about TPG/iiNet deal. @JWood_Biz cracking interview. #ausbiz https://t.co/CmfQrRrTMO via @FinancialReview
Jessica Sier (@jessicasier) May 6, 2015Vocus Communications Limited (ASX: VOC) CEO James Spenceley is not happy with TPG Telecom Limited (ASX: TPM) for blocking his company's merger with Amcom Telecommunications Limited (ASX: AMM).
- Stock of the Day – brought to you by Tim McArthur – Woolworths Limited (ASX: WOW). Best opportunity in 5 years to buy shares in the retailer? Find out more here.
