The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) is expected to trade sideways today following negative leads from international markets.
Here's a recap:
- FTSE 100 (UK): down 3.1%
- DAX (Germany): down 6.8%
- CAC 40 (France): down 8%
- Dow Jones (USA): down 3.4%
- NASDAQ (USA): down 4.1%
In London, shares slumped after Britain elected to leave the Eurozone. The "leave" vote, dubbed 'Brexit', sent ripples throughout Europe and global markets. FTSE-listed shares of BHP Billiton Limited (ASX: BHP) and Rio Tinto Limited (ASX: RIO) finished 1.3% and 0.6% lower, respectively.
US markets also felt the effects of Brexit, with each stock exchange falling sharply. The financial sector was worst performing, falling 6%, while the utilities sector was best performing.
Closer to home, the Sydney Futures Exchange is tipping a flat start in the S&P/ASX 200.
Shares in focus will include BHP Billiton. This morning, the global mining giant made a presentation stating its exploration spend would account for 18% of its capital budget, or as much as $US900 million in its 2017 financial year. It also revealed operating costs had fallen 70% since 2013.
Australia's major bank shares will also be in focus today after a report written by NAB senior credit analyst, Simon Fletcher, concluded tougher bank capital requirements are coming. If higher capital reserves are indeed required, Westpac Banking Corp (ASX: WBC), Commonwealth Bank of Australia (ASX: CBA), National Australia Bank Ltd. (ASX: NAB) and Australia and New Zealand Banking Group (ASX: ANZ) will be expected to boost the amount of 'safe' capital they hold in the event of a market shock.
Finally, Wellard Ltd (ASX: WLD) updated the market on its Separation Settlement revealing it will be paid $15.8 million by WGH Holdings Pty Ltd to restore its balance sheet.
In broker news:
- Canaccord Genuity analysts cut their Perseus Mining Limited (ASX: PRU) price target 14% to $0.90;
- Deutsche Bank analysts cut their Sims Metal Management Ltd (ASX: SGM) price target 8.8% to $7.99;
- Macquarie analysts raised their Fortescue Metals Group Limited (ASX: FMG) price target 3% to $3.60, according to Dow Jones Newswires.
