The local share market is expected to open lower today following falls in US and European markets overnight.
Here's a recap:
- Dow Jones (USA) – down 0.92%
- NASDAQ (USA): down 0.07%
- FTSE 100 (UK): down 1.42%
- DAX (Germany) – down 1.95%
- EURO STOXX 50 (Europe) – down 1.87%
In the US, leading resources businesses led markets lower. It was the same on European markets, with FTSE-listed shares of BHP Billiton Limited (ASX: BHP), Rio Tinto Limited (ASX: BHP) and Anglo American Plc falling 5%, 8.4% and 11.3%, respectively. In a shocking – but not entirely unexpected – announcement, Anglo American said it will suspend its dividend, strip billions of dollars of assets from its balance sheet and cut its workforce by 85,000 – from 135,000 to 50,000.
Given the gravity of the news, from what was – just one year ago – a major global mining house, locally listed shares of Fortescue Metals Group Limited (ASX: FMG), BHP and Rio will almost certainly come under pressure.
The Sydney Futures Exchange is pointing to a 23-point slide in the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) at the open.
To add to the pressure, iron ore prices fell again overnight, to $US38.80 per tonne, according to the Fairfax Press. Motley Fool writer/analyst, Mike King, recently showed that just two Australian iron ore miners are making money with market prices below $US40 per tonne.
Following vicious selloffs in oil producers' share prices yesterday, crude oil prices stabilised overnight, but remain near a seven-year low. Santos Ltd (ASX: STO), Oil Search Limited (ASX: OSH) and Woodside Petroleum Limited (ASX: WPL) shareholders will be hoping for some reprieve from the recent downtrend.
Finally, Northern Star Resources Ltd (ASX: NST) shares will also be in focus after the company gave an update to the ASX this morning on its Hermes deposit at its Plutonic operation.
