The S&P/ASX 200 (Index: ^AJXO) (ASX: XJO) is expected to trade lower today following negative leads from international markets overnight.
Here's a recap:
- Dow Jones (USA): down 1.6%
- NASDAQ (USA): down 0.4%
- FTSE 100 (UK): down 2.4%
- DAX (Germany): down 2.9%
In Europe, investors sold down shares following further economic concerns out of Asia and the US. Once again, mining and resources companies fell hard, with FTSE-listed shares of BHP Billiton Limited (ASX: BHP) and Rio Tinto Limited (ASX: RIO) falling 3% and 3.4%, respectively. Investors fleeing from riskier assets like shares have pushed bond yields in the US, UK and Germany sharply down so far in 2016.
In the US, industrials and financials led markets lower. Twitter Inc. again fell hard while Bank of America Corp shares lost nearly 7%.
Closer to home, the Sydney Futures Exchange is tipping a 36 point, or 0.7%, fall in the S&P/ASX 200 at the open.
Shares of gold miners like Newcrest Mining Limited (ASX: NCM), Northern Star Resources Ltd (ASX: NST) and EVOLUTION FPO (ASX: EVN) will today be in focus after recent uncertainty lifted gold prices. Overnight, the price of gold rallied 4% to $US1,246.22 an ounce.
Another company in focus will be BlueScope Steel Limited (ASX: BSL). The steel producer today announced an increase in its half-year underlying profit guidance, increasing its underlying EBIT (earnings before interest and tax) forecast to around $230 million from $180 million. Moreover, the company anticipates it will write-up the carrying value of its North Star BlueScope interest by $700 million, but it will also incur an impairment of around $570 million for other assets.
The recently-listed Baby Bunting Group Ltd (ASX: BBN) reported its half-year results to the market this morning, showing a 30% increase in revenue but a 23% fall in net profit.
Meanwhile, Tabcorp Holdings Limited (ASX: TAH) announced a deal to operate the exclusive NSW Keno business until 2050.
Finally, in broker news, analysts at Bell Potter have cut their price target on Virgin Australia Holdings Ltd (ASX: VAH) by 4.1% to $0.47, while Credit Suisse raised their price target on Cochlear Ltd (ASX: COH) 7.2% to $89.
